Investors in Asia experienced mixed trading as they awaited significant reports on the US economy, specifically the latest inflation figures. The Hang Seng in Hong Kong and the Shanghai Composite both saw modest gains, while Tokyo and Bangkok markets were closed for holidays. Meanwhile, Seoul’s Kospi and Taiwan’s Taiex both saw significant increases, with shares in Samsung Electronics and Foxconn rising. In Australia, the S&P/ASX 200 also rose.
In the UK, Heathrow Airport reported a decline in passenger numbers on routes where passengers are charged an extra £10 due to the electronic travel authorisation (ETA) system. The system has had a negative impact on the airport’s hub competitiveness. Additionally, Burger King UK announced resilient sales over the first half of 2024, highlighting growth and profitability improvements.
In the financial sector, BT shares surged after Indian telecoms giant Bharti Enterprises acquired a near 25% stake in BT. Bharti stated that they have no intention of making an offer to acquire the company. This deal comes after embattled French tycoon Patrick Drahi cashed in almost £1bn of shares in BT.
Looking ahead, inflation figures are expected to be released this week, with economists predicting an increase in prices for the first time this year. External member of the Monetary Policy Committee at the Bank of England, Catherine Mann, warned against assuming the battle against inflation is over, expressing concern about future price rises.
As markets open, the FTSE 100 has started positively, rising 0.4%, signaling a return to calm after last week’s volatility. European markets also opened higher, with the Paris Cac 40 and Frankfurt’s Dax both seeing gains. The day begins with optimism and a sense of stability after recent turbulence in global stock markets.
