Scott Bessent's appointment as Donald Trump's future US Treasury Secretary has been warmly welcomed by Wall Street, adding fuel to the risk-taking fire ignited by the US presidential election. Even Europe has caught the fever, engaging in what the industry calls "cheap buybacks." Investors are snapping up stocks that have taken a beating this year, betting they've hit rock bottom.
In other news, rumors of a ceasefire between Israel and Hezbollah are swirling, with an announcement expected today. This speculation sent oil prices tumbling, with Brent crude dropping from just over $75 to $72.50 a barrel.
In corporate news, AO World, an online electrical retailer, has raised its profit forecast after a 30% rise in half-year profits to £17 million. The company now expects annual profits between £39 million and £44 million.
Halfords reported a 1.3% decline in half-year profits to £21 million, citing uncertainty in consumer behavior and market trends. Compass Group, a global catering giant, reported a 16% increase in underlying profits to $3 billion (£2.4 billion) for the year ending September 30.
On the economic front, the US is set to release consumer confidence and new home sales figures.
Things to read today:
- Crony capitalism comes to America (New York Times).
- Democrats are bad at populism (The Atlantic).
- Mistral sets up shop in Silicon Valley to rival US rivals in AI recruitment (Financial Times).
