British House Prices reported an Uptick, exceeding Economic Forecasts:

Image Souce: Krish Capital Pty Ltd

Index Update: The FTSE 100 index, a key benchmark index for the London stock exchange, went up around 0.10% on 02 December 2024. Energy, Real Estate & Consumer Cyclicals sector demonstrated a substantial decline. Moreover, sectors such as Technology, Industrials & Basic Materials faced a significant growth. 

Macro Update:  In November, British house prices rose 3.7% year-on-year and 1.2% month-on-month, reflecting resilience in the property sector despite higher borrowing costs, surpassing economists' forecasts. Meanwhile, business confidence dipped to a five-month low, with the Lloyds Bank Business Barometer falling to 41%, though still above the long-term average of 29%, signaling continued optimism about trading prospects. A Bank of England stress test revealed some vulnerabilities in central counterparties but affirmed their overall resilience in financial market operations. Additionally, Prime Minister Keir Starmer plans to detail policy goals for economic growth, healthcare, crime, and green energy, as his government seeks to regain momentum after recent polling setbacks. 

Top Market Movers: Among top gainers on FTSE 100 index, Spirax Group PLC (LSE: SPX) witnessed a rise of 2.09% followed by Kingfisher PLC (LSE: KGF) which gained around 1.41%. 

Commodity Update: Currencies of BRICS nations weakened on Monday, while the U.S. dollar strengthened after President-elect Donald Trump threatened 100% tariffs on the bloc if it moves away from the greenback. This follows Trump's call for BRICS members to refrain from creating or supporting an alternative currency. The dollar's rise is also linked to market expectations of U.S. interest rate cuts. In commodities, gold fell 1.19% to $2,649.80, silver dropped 1.46% to $30.65, and copper declined 0.44% to $8,981.50. Meanwhile, Brent crude edged up 0.10% to $71.92 per barrel, supported by strong Chinese factory activity and ongoing Middle East tensions despite a ceasefire agreement. 

Our Stance: The global economic and geopolitical landscape has been significantly influenced by U.S. President-elect Donald Trump's warning to BRICS nations. Trump demanded these countries abandon plans to create or support an alternative currency to the U.S. dollar, threatening 100% tariffs and restricted access to the U.S. market. This has strengthened the dollar, while the euro declined due to political uncertainty in France and anticipation of U.S. interest rate decisions. In Asia, currencies were impacted, with the Thai baht falling 0.7%, its worst performance in weeks, driven by dropping gold prices and the ripple effects of Trump’s stance. This highlights emerging markets’ sensitivity to U.S. policy changes. Meanwhile, oil prices rose, supported by robust factory activity in China and heightened Middle East tensions as Israel resumed attacks on Lebanon despite a ceasefire. These developments reflect the ongoing influence of geopolitical risks and economic shifts on global markets. Overall, Trump's strong stance against BRICS and continued political and economic instability globally point to heightened volatility, with significant implications for trade, currency stability, and economic growth. 

FTSE 100 

The FTSE 100 closed at 8,287.30, up 0.08%, forming a bullish candlestick pattern that indicates strong investor confidence and positive sentiment. The index is trading above its 21-period and 50-period Simple Moving Averages (SMAs), which now serve as important support levels, suggesting the potential for further upside. The Relative Strength Index (RSI) is at 59.88, showing that bullish momentum remains intact but is not yet overbought, leaving room for additional gains. On the weekly chart, the FTSE 100 closed at 8,287.30, up 0.31%, after bouncing off the 21-period SMA at 8,241.06. This bounce supports the positive outlook, highlighting strength in the current trend. Immediate resistance is at 8,400, and a breakout above this level could signal further bullish movement. Conversely, a drop below 8,020 could signal downside risks and potential consolidation. Investors should monitor these key levels for signs of trend continuation or reversal, as market sentiment remains cautiously optimistic.