After Tuesday's minor hiccup, it was quickly back to business as usual on the financial markets. This morning, I even read in a reputable publication (although I find it a little too AI-driven lately) that the rebound was fuelled by ‘bargain hunting’ in the United States. This expression is generally used under two conditions. First, we have absolutely no idea where the rise came from, and second, there has been a sufficiently significant decline to restore investors' appetite.

In this case, while the first condition was met, the second was not really. Take the S&P 500 index: it lost 0.4% on Tuesday after seven sessions of gains. It gained 0.6% yesterday, enough to set a new record. No, in these markets, it is definitely impossible to talk about bargain buying. Investors just want to join the party and their appetite is intact, even if there is some grumbling about valuations and the robustness of the foundations for the rise.

It was business as usual for technology stocks too. The Nasdaq 100 broke through the 25,000-point mark at the close under the leadership of the great AI guru, Nvidia boss Jensen Huang. When asked for the 11,000th time this year about customer appetite for his AI chips, the executive said that demand is, and I quote, ‘really, really strong’. We will really, really need to be alarmed when Huang stops doubling his adjectives in interviews. In the meantime, Nvidia is worth almost $4.6 trillion, which is $700 billion more than its closest rival, Microsoft.

The bullish trend is not exclusive to Wall Street. Europe and Asia are following suit. On the old continent, even France and its shaky governance are doing well. The CAC 40 gained more than 1% yesterday, returning to above 8,000 points. The risk premium linked to political instability seems to already be factored into prices: the Paris index is up 9% in 2025. This is less than the European average (13% gains for the Stoxx Europe 600), but it is almost unexpected given the circumstances. 

Continuing with business as usual, the minutes of the Fed's latest meeting did not add much to the debate. US central bankers are still torn between fears of an economic slowdown and fears of inflationary pressure. They are playing it by ear, but were keen to confirm that the majority view is to continue cutting rates until the end of the year. The market has kept its bet intact on two further rate cuts before Christmas.

In other news, Donald Trump announced that Israel and Hamas have agreed on the terms for the release of hostages held by the Palestinian militant group. Israel could withdraw its troops behind a clearly defined line. These advances are steps towards ending the conflict, under the aegis of the United States.

In Japan, the yen rebounded modestly amid rumours of supportive intervention by the Bank of Japan after the currency slipped against the dollar. Again, this is business as usual.
China plans to tighten restrictions on rare earth exports, which have become a powerful tool in trade negotiations with Western countries.

In Asia-Pacific, everything is looking very green this morning. Returning from a week-long holiday, mainland Chinese indices are up, with the CSI 300 gaining 1.3%. Hong Kong is the exception, down 0.1%. India and Australia are up more moderately, by 0.2%. In Japan, the Nikkei 225 is up 1.5%. South Korea is still closed for a public holiday.

Today's economic highlights:

Today: in the United States, new unemployment claims and GM wholesale inventories will be available. See the full calendar here.

  • GBP / USD: US$1.34
  • Gold: US$4,039.85
  • Crude Oil (BRENT): US$66.33
  • United States 10 years: 4.13%
  • BITCOIN: US$121,998

In corporate news:

  • HSBC Holdings proposes to privatize Hang Seng Bank, valuing it at approximately $37.36 billion.
  • Shell is nearing the acquisition of a U.S. license to export Venezuelan gas to Trinidad.
  • Gerresheimer lowers its 2025 outlook following weaker third-quarter performance.
  • Suedzucker experiences an 82% decline in quarterly operating profits.
  • Admicom Oyj lowers its 2025 guidance due to a delayed recovery in the construction market.
  • Google plans to invest 5 billion euros in Belgium, creating 300 jobs.
  • Nvidia receives US approval for chip exports and some sales to the UAE.
  • Elon Musk's xAI raises $20 billion in funding, surpassing initial expectations.
  • OpenAI expands ChatGPT Go to 16 additional Asian countries.
  • Microsoft collaborates with Harvard to improve its Copilot AI assistant.

See more news from UK listed companies here

Analyst Recommendations:

  • B&M European Value Retail S.a.: Shore Capital upgrades to buy from hold with a target price of GBX 300.
  • Anglo American Plc: Deutsche Bank maintains its buy recommendation and raises the target price from GBX 2600 to GBX 3000.
  • Burberry Group Plc: Deutsche Bank upgrades to buy from hold with a price target raised from GBX 1200 to GBX 1500.
  • Flutter Entertainment Plc: Berenberg maintains its buy recommendation and reduces the target price from GBX 24700 to GBX 24200.
  • Genuit Group Plc: Peel Hunt maintains its buy recommendation and raises the target price from GBP 4.60 to GBP 4.80.
  • Unite Group Plc: Goldman Sachs maintains its buy recommendation and reduces the target price from GBX 1050 to GBX 1020.
  • Compass Group Plc: Morgan Stanley maintains its overweight recommendation and raises the target price from GBX 2700 to GBX 3000.
  • Shell Plc: TD Cowen maintains its buy recommendation and raises the target price from GBX 2965 to GBX 2989.
  • Astrazeneca Plc: HSBC maintains its buy recommendation and raises the target price from GBP 130 to GBP 146.40.
  • Glencore Plc: JP Morgan downgrades to neutral from overweight and raises the target price from ZAR 88 to ZAR 94.
  • Aston Martin Lagonda Global Holdings Plc: Jefferies maintains its hold recommendation and reduces the target price from GBX 75 to GBX 70.