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The FTSE 100 opened the week in the red, after US inflation last week came in ‘broadly stable’, with an interest rate cut by the Federal Reserve expected on Wednesday; meanwhile Magnum Ice Cream has started trading in London and Amsterdam. ‘Last week was full of uncertainties and mixed signals, but...the PCE report the Fed’s preferred inflation gauge confirmed that inflation remains elevated, near 3%, well above the 2% target, but broadly stable,’ Swissquote’s Ipek Ozkardeskaya said. ‘Core PCE even eased slightly to 2.8% from 2.9%. More importantly for sentiment, both the 1-year and 5-year Michigan inflation expectations fell...The softening in recent economic data explains why inflation expectations are easing: the weaker the labour market, the more cautious households become, and the slower price pressures build. ‘That’s not good news for Main Street but it is good news for Wall Street...a 25bp Fed cut on Wednesday is essentially locked in. The recent weakness in employment data and a stable, up-to-date PCE print support that decision.’ The FTSE 100 index opened up 6.73 points, 0.1%, at 9,673.74. The FTSE 250 was down 22.53 points, 0.1%, at 22,041.42, and the AIM All-Share was up 1.02 points, 0.1%, at 752.32. The Cboe UK 100 was up 0.2% at 970.27, the Cboe UK 250 was down 0.1% at 19,132.55, and the Cboe Small Companies was down marginally at 17,684.69. On the FTSE 100, Unilever traded 3.9% lower at 4,284.00 pence. Trading in the Magnum Ice Cream Co NV on Monday began after Unilever PLC said it had completed the demerger of the ice cream business on Saturday. In Amsterdam, shares in Magnum Ice Cream Co traded up 1.6% at €13.00, above the €12.80 reference price set by exchange operator Euronext on Friday. Trading in New York commences later on Monday. In London, shares traded 3.0% higher at 1,133.00 pence each. With around 612 million shares in issue, this implies a market value of €7.84 billion, below some market expectations. ‘We have a clear strategy to deliver growth, improve productivity and reinvest in TMICC in line with the medium-term targets we set out at our recent capital markets day,’ TMICC Chief Executive Peter ter Kulve said. Unilever first announced plans to spin off its ice cream unit, which includes Ben & Jerry’s and Magnum, in March last year. In European equities on Monday, the CAC 40 in Paris was down 0.2%, while the DAX 40 in Frankfurt was up 0.2%. The pound was quoted lower at $1.3324 early on Monday in London, compared to $1.3326 at the equities close on Friday. The euro stood at $1.1652, higher against $1.1635. Against the yen, the dollar was trading up at JP¥155.43 compared to JP¥155.42. In Asia on Monday, the Nikkei 225 index in Tokyo was up 0.2%. In China, the Shanghai Composite was up 0.5%, while the Hang Seng index in Hong Kong was down 1.0%. The S&P/ASX 200 in Sydney closed down 0.1%. In the US on Friday, Wall Street ended mixed, with the Dow Jones Industrial Average up 0.2%, the S&P 500 up 0.2% and the Nasdaq Composite up 0.3%. The yield on the US 10-year Treasury was quoted at 4.15%, widening from 4.14%. The yield on the US 30-year Treasury was quoted unchanged at 4.80%. Brent oil was quoted higher at $63.75 a barrel early in London on Monday from $63.60 late Friday. Gold was quoted lower at $4,207.09 an ounce against $4,208.77, but had risen by around 0.5% earlier in the morning. ‘The move reflects renewed confidence that the Federal Reserve is preparing multiple rate cuts and a continued lag in the impact of weaker US data from earlier this quarter,’ commented XS analyst Samer Hasn. ‘For now, buyers are leaning on policy expectations rather than growth fundamentals. ‘The rally, however, looks increasingly vulnerable. A faster recovery in the US economy following tariff reversals or a resolution of the government shutdown risk could alter the macro landscape quickly.’ Still to come on Monday’s economic calendar, there are comments from Bank of England MPC member Alan Taylor due in the afternoon. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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