Apple and Gold Hit Records as Risk Rally Builds

Apple shares reached a record high late on Monday, helping lift the Nasdaq 1.37% as strong US tech gains spread to Asia, with Japan’s Nikkei closing above 49,000 and heading toward 50,000. Spot gold touched an all-time high of $4,381 before easing to $4,323 on Tuesday as the dollar strengthened and investors took profits. Oil prices fell for a second day, with Brent crude trading at $60.84 a barrel amid signs of oversupply and slower demand linked to US-China tensions.

Equities

The FTSE 100 closed 0.6% higher at 9,412.71 points on Monday, supported by strength in defence and mining shares after a calmer tone in global markets. The mid-cap FTSE 250 rose 0.4%. Aerospace and defence companies were among the strongest performers, with Rolls-Royce gaining 2.6% and Babcock rising 2.3%, following similar gains across European peers. The index of precious metal miners added 1.5% as gold prices moved higher, while bank shares recovered 0.7% after last week’s selloff linked to concerns over US regional lenders.

Housebuilders slipped, with Persimmon down 1.5% after a Rightmove survey showed UK asking prices rose only 0.3% in the four weeks to 11 October, below the seasonal average. Homebuilders’ shares typically strengthen in autumn, so the weak data weighed on sentiment. The retailer's index fell 1.5%, led by a sharp 22% drop in B&M shares after the company cut its full-year profit forecast, citing an accounting error and the resignation of its chief financial officer, Mike Schmidt. Secure Trust Bank declined 2.3% after announcing plans to raise its provision by about £16 million to compensate customers affected by motor financing mis-selling.

In the United States, major indices rallied late on Monday, helped by strong earnings from large technology and financial firms. The Dow Jones Industrial Average climbed 1.12% to 46,706.58, the S&P 500 rose 1.07% to 6,735.13, and the Nasdaq Composite gained 1.37% to 22,990.54. The Philadelphia Semiconductor Index advanced 1.6% to a record high, driven by renewed optimism in chipmakers ahead of results from Intel later this week. Apple shares reached a record high during trading, while Meta, Netflix and Alphabet rose between 1.3% and 3.3%.

Boeing added 1.8% after the US Federal Aviation Administration approved an increase in production of its 737 MAX jets to 42 aircraft per month. WeightWatchers surged 9.3% following news of a partnership with Amazon to deliver weight-loss medication. Investors also looked ahead to results from Tesla, IBM, General Motors and Ford, with analysts forecasting S&P 500 earnings growth of 9.3% year-on-year for the third quarter, a slight improvement from earlier estimates.

Forex & Commodities

The dollar moved higher late on Monday, supported by gains against the yen and modest strength versus other major currencies as traders watched political developments in Japan and Europe. The dollar stood at ¥150.71 after hardline conservative Sanae Takaichi looked set to become Japan’s first female prime minister, backed by a new coalition expected to expand fiscal spending. The yen found some support from Bank of Japan policymaker Hajime Takata, who repeated his call for further rate rises ahead of the 30 October policy meeting. Japan’s Nikkei 225 index closed more than 3% higher at a record level, while the euro edged down to $1.1640 as investors remained cautious about French political risks. The US dollar index rose to 98.59, while the pound was broadly steady in quiet trading ahead of US inflation data due on Friday.

Spot gold slipped early on Tuesday to $4,323 per ounce after touching a record $4,381 late on Monday. The pullback reflected profit-taking and a firmer dollar after strong gains driven by expectations of lower US interest rates. Markets are fully pricing in a Federal Reserve rate cut this month and another in December. Silver fell to $51.54 per ounce, platinum eased to $1,608 and palladium to $1,483. Investors are now focused on the delayed September US consumer price index, expected to show annual inflation of 3.1%, which could influence the pace of future rate cuts.

Oil prices fell for a second straight day on Tuesday. Brent crude traded at $60.84 a barrel and US West Texas Intermediate at $57.22, both near their lowest levels since early May. The weakness followed signs of excess supply and softer demand amid trade tensions between the US and China. Analysts said the market structure has shifted into contango, with near-term prices below future contracts, reflecting plentiful supply. OPEC+ members have continued adding production, while the International Energy Agency forecasts a surplus approaching 4 million barrels per day by 2026.