Indices rise but Oil slumps on ceasefire reports

Indices have begun the week on the front foot, but news of a ceasefire in Lebanon has weighed heavily oil prices, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Dow pushes to new highs

November saw the Dow breach 44,000 for the first time, and there is a very real possibility that the index will surpass 45,000 in the same month. Stocks received a boost on Friday on news that Trump had chosen Scott Bessent for the US Treasury, a reassuring sign for investors. Thanksgiving week is generally positive for US markets anyway, but they have an extra spring in their step as the holiday approaches. Reports of a possible ceasefire in Lebanon have bolstered risk appetite too, though it has done little for oil and gold, both of which seem poised for more losses.

FTSE 100 climbs

The past two weeks have helped repair a lot of the damage in the FTSE 100, which has continued its recovery from the 8000 low. Unlike US indices, the FTSE 100 is still some way off a new high, but with yields around the globe softening the index has recouped some of its lustre. So far the market isn’t reading too much consumer weakness into the Kingfisher figures, preferring to hope for general Christmas splurge.