"From a UK perspective, we are already seeing talk of yet another black hole in the public finances, with the MoD warnings of a £28bn budget deficit that needs to be funded over the coming four-years. Question marks over whether this will come to fruition could take some of the froth out of stocks such as BAE Systems and Rolls-Royce."
"Nonetheless, for the FTSE 100, the focus has been on the commodities space, with the likes of Fresnillo, Glencore, Rio Tinto, and Antofagasta gaining ground. While we have seen US inflation remain relatively stable under Trump thus far, that narrative could start to change if the surge in commodity prices start to put pressure on companies reliant on the likes of gold, silver, copper, lithium, platinum, tin, nickel, rhodium, and palladium."
"In a world where Trump has reiterated the need for everyone to look after themselves, it comes as no surprise to see countries and businesses stockpile key commodities to hedge future price rises and avoid being caught short in a supply squeeze. In a world that faces a surge in defence spending, huge AI buildouts, an energy transition, strategic stockpiling, and rising fiscal expansion, the rise in prices for these strategic commodities shows precious little sign of slowing given the lack of any immediate rise in supply."
European indices opened higher with FTSE 100, CAC, Ibex, and EURO STOXX 50 reaching fresh record highs after a softer-than-expected US inflation gauge. Investor sentiment appears to be shifting away from US markets amid political uncertainty in the US, potentially benefiting European and Asian equities. UK fiscal concerns surfaced as the MoD warned of a £28bn funding shortfall over four years, risking pressure on defence-related stocks. Commodities-led gains supported FTSE performance, but rising prices for strategic metals and minerals threaten input costs for manufacturers. US PPI inflation is now in focus for its potential impact on input-cost trends.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]