Last week’s rally continued on Monday as with FTSE 100 on course to set a fresh all-time record closing high amid rising optimism around interest rates.
London’s leading index touched 8,533, matching Friday’s peak before easing back to trade at 8,514.
“The FTSE 100 has opened the week buoyed by positive winds and renewed investor enthusiasm. It is close to clinching a fresh intraday record,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
“After reaching an all-time high on Friday there seems little to spark a pull-back, with US markets shut for Martin Luther King Day. However, all eyes will be on Donald Trump’s inauguration later as the 47th President of the United States and his comments are likely to hold sway on markets.”
Reports suggest Trump has dozens of executive orders prepared for his first days of presidency. These orders will set the tone for his second term as US President and produce trading opportunities across a broad range of asset classes.
“Markets are eagerly awaiting Trump’s first batch of executive orders as this will provide clarity on the lay of the land. Immigration, energy and trade will be high up the list and, as always, the devil will be in the detail. Trump has had a lot to say on these issues but he also has a reputation of not always following what he’s promised to do to the letter,” said Russ Mould, investment director at AJ Bell.
“Markets want to know which countries and industry sectors will be targeted and the relevant tariff rates to price in any risks or opportunities to equities, currencies and bonds around the world.”
Cryptocurrency markets ushered Trump in with a fresh record high in Bitcoin. Trump has promised to bring crypto mainstream, making the asset class the biggest beneficiary of his victory to date.
In London, there was a wait-and-see feel to markets. The FTSE 100 carved out minor gains supported by banks and oil majors. UK-centric stocks enjoyed marginal gains as the good feeling around the UK after UK inflation data last week continued. Kingfisher and Rightmove rose on the hope that home purchases and DIY will pick up as 2025 develops.
Hedge fund Pershing Square was the top riser after increasing dividends by 13% for 2025.