Must read: gains after AI excitement, rate cut hopes boost Wall St
ii’s head of investment rounds up the morning’s big news.
10th September 2025 08:57
by Victoria Scholar from interactive investor
GLOBAL MARKETS
European markets have opened higher with the CAC and DAX outperforming, while the FTSE 100 is logging more tempered gains.
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Associated British Foods (LSE:ABF) is dragging on the UK blue-chip index, shedding almost 10% after results, while miners such as Fresnillo (LSE:FRES), Endeavour Mining (LSE:EDV) and Glencore (LSE:GLEN) are also under pressure. Airlines are struggling too with International Consolidated Airlines Group SA (LSE:IAG) and easyJet (LSE:EZJ) shedding 1%.
Meanwhile, Vistry Group (LSE:VTY) shares are down 5% following a drop in H1 profit.
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In France, President Emmanuel Macron appointed Sebastien Lecornu as its new prime minister replacing ousted Francois Bayrou after he lost a confidence vote on his budget plans.
Elsewhere in Europe, Novo Nordisk AS Class B (XETRA:NOV) is up around 2% after announcing plans to cut 9,000 jobs and trim costs in an attempt to fend off stiff competition within the GLP-1 space. Inditex, known as Industria De Diseno Textil SA Share From Split (XMAD:ITX), is up sharply on the IBEX after Zara’s parent company saw an improvement in autumn sales.
After Wall Street closed at fresh record highs fuelled by artificial intelligence (AI) hype and expectations of looser monetary policy, US futures are pointing to a higher open for the S&P and the Nasdaq.
Oracle Corp (NYSE:ORCL) surged by over a quarter in the post-market session after its AI-related cloud revenue forecasts excited investors. Shares in AI infrastructure firm Nebius Group NV Shs Class-A- (NASDAQ:NBIS) closed up almost 50% thanks to a deal worth nearly $20 billion (£14.8 billion) with Microsoft Corp (NASDAQ:MSFT).
Shares in Apple Inc (NASDAQ:AAPL) failed to get excited by its product launch event. The tech giant unveiled a new slimmer iPhone Air to compete with Samsung Electronics Co Ltd DR (LSE:SMSN)’s skinny phone.
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A US judge has temporarily blocked US President Donald Trump from firing Federal Reserve governor Lisa Cook, at least for now, in a significant vote in favour of central bank independence. This means Cook will participate in next week’s rate-setting meeting when the Fed is expected to cut interest rates.
Trump has been putting significant pressure on the Fed to cut interest rates and has repeatedly criticised Fed chair Jerome Powell.
There were some significant downgrades to US payrolls in the 12 months to March from the BLS, pointing to further labour market weakness and providing more support for a rate cut this month. All eyes are on PPI and CPI data out today and tomorrow respectively.
Oil prices are trading higher after an Israeli strike on Hamas leaders in Qatar. Brent and WTI are both up over 1%, trading above $67 and $63 a barrel respectively.
In Asia, China’s CPI fell by 0.4% year-on-year in August, below forecasts for a drop of 0.2%, hitting a six-month low.
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