The FTSE 100 gained on Monday as the wave of positive sentiment established by robust US jobs data on Friday pushed into a second session.

A bumper Non-Farm Payrolls reading on Friday confirms the US economy can stomach the high-interest rate environment.

The 353,000 increase in the headline jobs added may have unnerved some equity investors concerned the Federal Reserve would push the first rate cut even further into the future.

Instead, US stocks surged higher in Friday’s session, suggesting equity bulls are happy for rate cuts to be put off as long as the US economy remains supportive of earnings.

“The markets continue to forge ahead despite a blowout jobs report from the US last Friday which seems to have finally put the nail in the coffin of the idea rates will be cut next month,” said AJ Bell investment director Russ Mould.

“The FTSE 100 clawed its way to its best levels in nearly a month with fairly broad-based strength throughout the index. There are just the first signs that we are inching away from a looking glass world where bad news is good news because of the implications for monetary policy to good news being good news once again.”

The FTSE 100 was 0.4% higher at the time of writing on Monday.

The US economy has been remarkably resilient in the face of the cost of living crisis, and higher rate environment, and predictions of a recession have been largely extinguished.

In the UK, the economic situation is less certain. Still, investors seem to be happy to follow the United States’ lead, given the Bank of England and Federal Reserve are making similar sounds on rate cuts.

There were signs of concern about UK-focused companies on Monday, with 3% falls for Howden Joinery and JD Sports.

We wrote last week that GSK looked set to trend to the top of the well-established trading range after releasing a positive update. This view was corroborated by equity analysts at Deutsche Bank, who raised their price target to 1,950p, sending GSK shares 2.5% higher.

Ocado was the FTSE 100’s top riser, gaining 4.4%, as the retailer bounced off support at 500p.

Vodafone shares were down marginally on Monday after the group announced 4.7% organic revenue growth in Q3 and a 1.4% decline in reported revenue growth.

The update provided nothing for investors to get excited about and shares slipped 0.4%. However, the update did demonstrate Vodafone were addressing the problems that have ravaged shares in recent years as German revenue grew 0.3%.

“We’ve made good strategic progress in the first nine months of the year, with improving customer satisfaction and three consecutive quarters of service revenue growth in Europe,” said Margherita Della Valle, Vodafone Group Chief Executive.

Despite stabilisation in Germany, group revenue fell 2.3% as southern Europe continued to drag on revenue.

Italy and Spain were causes for concern with negative revenue growth while the African business Vodacom was again the bright spot with service revenue growth of 8.8%.

“Vodafone’s third quarter had some pockets of optimism for investors to cling to. Growth was in line with the second quarter, arguably a better result than some had feared. The key German market managed to scrape its way into growth territory but saw a slowdown. Comparisons to the second quarter were always going to be tough, with some non-recurring revenue streams not repeating. Regulatory changes in Germany are set to kick in this year, adding a layer of uncertainty to operations in the region,” said Matt Britzman, equity analyst, Hargreaves Lansdown.

“Streamlining the business remains a top priority and potential deals in Italy are still on the table. There’s scope for upside in the region if a deal can be found, but whether that would translate to a meaningful share price reaction remains to be seen. Deals in the UK and Spain failed to stir up too much excitement.

Britzman highlighted the value in Vodafone shares but cautioned the dividend may come under pressure as analysts predict dividend cuts.

“Vodafone looks cheap by most measures and with a forward yield of 9.2% it’s easy to see the attraction. But an argument can be made that the dividend is under some pressure in the near term. The Spanish sale, while a positive move for earnings given it’s a loss-making region, will be a hit to free cash flow. A capital allocation review is on the cards post-completion, and some analysts are already pencilling in dividend cuts as a result.”

Helium One Global shares surged on Monday after announcing encouraging results from its Itumbula West-1 well in Tanzania, with high concentrations of helium and hydrogen gas detected during drilling.

Helium One shares were trading 92% higher at 2.65p at the time of writing.

The company reported helium levels of up to 4.7% during drill stem tests in the well’s basement rock. This concentration is nearly 9,000 times above normal background levels.

Hydrogen was also found at 2.2% concentration in the basement – over 37,000 times higher than usual.

Analysis of downhole fluid samples from three well test intervals confirmed the presence of elevated helium. Duplicate samples will be sent to a second lab for further analysis.

Temperatures exceeding 80°C were recorded in the basement and across fault zones, indicating potential for helium and hydrogen generation. The company said these hot basement fluids are consistent with a low enthalpy geothermal system.

The company also highlighted improvements in drilling performance, with non-productive rig time reduced by over 350% compared to its previous well.

“We are delighted with the findings from Itumbula West-1 and the results from the down hole well testing have clearly confirmed the presence of a producing helium province in the Rukwa Rift Basin. The learnings from the Tai-3 well provided invaluable additional subsurface information and how the helium system works. By applying these findings, we adjusted our well location at Itumbula, and this has certainly yielded the results we were hoping for and justified that decision,” said Lorna Blaisse, Chief Executive Officer at Helium One.

“Flowing helium to surface in such high concentrations is a huge milestone for the Company and we will now fully evaluate these results and focus on advancing this project in the most effective way possible; one that will aim to achieve commerciality at the earliest opportunity.

“This drilling campaign has been a huge success for both the Company and for Tanzania. I would like to thank all of those involved in bringing the project to this point of success – especially to our in-country teams and for the continued support from the Ministry of Minerals and the Mining Commission of Tanzania, as well as the local communities where we operate.

“We look forward to providing further updates as we fully evaluate the results and outline how we are planning the next steps to advance the project.”

Tekcapital shares rose on Monday after the technology investment company received a reiterated ‘buy’ rating and revised share price target. 

Equity analysts at SP Angel have given Tekcapital a 20.7p price target, suggesting 100% upside from the share price at the time the note was published.

Tekcapital shares rose shortly after the note was released to trade at 11.4p.

SP Angel’s note was issued after portfolio company MicroSalt listed on London’s AIM last week, cementing the value in Tekcapital’s holding. 

After a rapturous debut, the MicroSalt share price has continued to appreciate inferring deep value in Tekcapital’s current share price.

At the time of writing, MicroSalt’s market cap stood at £23.7m valuing Tekcapital’s 77% stake at £18.2m. Tekcapital’s entire market cap was £19m on Monday morning, completely discounting the value in the firm’s other three portfolio companies.

Further supporting Tekcapital’s investment case, analysts at SP Angel said that while the current portfolio company valuations support upside in the share price, they felt market valuations are somewhat depressed, suggesting a higher indicative price target, should the portfolio companies rerate.

“In our view, the stock trades at a double discount to its long-term potential because the underlying prices that constitute the majority of our fair value target are themselves depressed,” SP Angel wrote in the note released on Monday.

Tekcapital shares were 14% higher at the time of writing.

Meta shares were soaring in the US premarket on Friday as the technology group announced earnings growth that beat expectations and please investors with news of its first quarterly dividend.

Meta has been the standout of the mega tech earnings season so far. Not because of underlying earnings – although they were good – but because Facebook-owner Meta announced its first quarterly dividend.

For many, it will mark the transition from a growth company to a portfolio pillar providing regular income.

As with all ‘Magnificent 7’ technology stocks, the company was all to pleased to reveal progress in the roll out of AI across the burins and now sees it as a core growth opportunity alongside the questionable Metaverse.

“We had a good quarter as our community and business continue to grow,” said Mark Zuckerberg, Meta founder and CEO. “We’ve made a lot of progress on our vision for advancing AI and the metaverse.” 

Meta’s shares have been on an astronomical run since lows around $90 in November 2022. Last night’s announcement has sent the stock another 21% higher to $479.

“Meta has seen a remarkable share price jump, as it announced its first ever quarterly dividend and a hefty share buyback. The topping of estimates also came as a very welcome surprise – the advertising revenue landscape remains very lumpy and Meta’s navigating this well,” said Sophie Lund-Yates, lead equity analyst, Hargreaves Lansdown.

“The potency of its offering is clear to see, with advertising impressions rising by a fifth, and price increases are tapering to more customer-friendly levels. The returning of cash to shareholders is a bold and well-regarded move. The amount of free cash pumping through the business means it’s more than able to afford it, and it helps pay investors for their patience as Meta works out the next generation of growth and all the Metaverse entails.”