The FTSE 100 rose on Monday amid a broad rally in European stocks as traders looked past French elections to value in Euro-area stocks after a sharp sell-off since the surprise snap elections were announced.
The FTSE 100 was 0.5% higher at the time of writing, with Prudential leading the charge higher. A wave of buying in European stocks saw the French CAC gaining 0.9% and German DAX adding 0.6%
France’s flagship CAC 40 gave up around 10% after President Macron announced shock elections – a move that saw London crowned Europe’s largest stock market once more.
The macro agenda was fairly light on Monday, so individual names had a chance to drive price action as investors waited for economic data points later in the week.
There was a sustained bid in retailers that spilled over from last week with JD Sports, Frasers Group and Burberry among the top gainers. Frasers Group was helped higher by a new strategic partnership with THG involving the adoption of THG’s Ingenuity platform and acquisition of luxury websites.
JD Sports added 3.3%, while Frasers Group gained 2.9%.
Prudential shares
Prudential was the FTSE 100’s top gainer after announcing a capital management plan that was headlined by the return of $2bn capital to shareholders before 2026 by way of share buybacks.
“I am pleased with the progress we continue to make in executing our strategy, as we drive towards generating growth in both value and cash returns for shareholders over the long term,” said Prudential CEO Anil Wadhwani.
“The significant growth opportunity ahead of us has not changed and we remain focused on realising that opportunity.”
Prudential shares were over 5% at the time of writing.
Interest rates
Although there was a lull in interest rate-sensitive events on Monday, expect commentary and positioning to pick up as the week progresses as traders look to PCE inflation data and hints of when the Fed may first cut rates.
“The big economic news comes at the end of this week with a reading of US core PCE inflation – the Federal Reserve’s preferred measure of prices. Investors will be looking for signs the inflationary pressure which has led to a ratcheting back of expectations on interest rate cuts are starting to ease,” said AJ Bell investment director Russ Mould.