The FTSE 100 opened higher on Monday, gaining 43.3 points or 0.45% to 9581.92, as global sentiment improves on renewed expectations of a potential Federal Reserve rate cut before year-end.
The optimism comes from comments made by New York Federal Reserve President John Williams, who suggested that weakness in the labour market now poses a greater economic threat than inflation. This shift has prompted traders to increase their bets on a December rate cut.
Standard Chartered posted a rise of 2.37% to £1,597 as banking and financial names benefited from improved risk appetite. Barclays also strengthened with a 1.59 % gain to £398.45, while Pershing Square Holdings advanced 1.58% to £4,762.
Scottish Mortgage Investment Trust rose 1.41% to 1,043 in response to a rebound in technology-linked assets. Anglo American recorded a 1.40% uptick to £2,748 after BHP confirmed it had stepped away from a potential merger, removing uncertainty.
Polar Capital Technology Trust gained 1.39% to £439 as tech-linked stocks recovered globally.
On the other hand, Games Workshop slipped 0.32% to £18,710, Admiral Group eased 0.57% to £3,134 and National Grid fell 1.54% to £1,121 as investors rotated away from defensive sectors. Shell’s share price dropped 0.56% following a soft start in energy markets.
BAE Systems weakened 0.85% to£1,698.50 despite ongoing geopolitical demand, and Severn Trent edged 0.36% lower to £2,762 amid interest-rate-sensitive moves in utility stocks.
The CBI’s Director-General, Rain Newton-Smith, called on the government to avoid imposing further cost pressures on UK businesses in the upcoming Budget, warning that the economy risks falling into a “stop-start cycle.”
AstraZeneca announced a $2 billion expansion of its US manufacturing operations in Maryland, reinforcing the company’s supply chain and supporting 2,600 jobs.
Mining giant BHP revealed it will no longer pursue a merger with Anglo American, allowing Anglo to progress with its planned combination with Canada’s Teck Resources.
Walker Crips agreed to a takeover by Singapore-based PhillipCapital at an 86% premium, while M&C Saatchi revised its profit outlook downward after the prolonged US government shutdown weakened fourth-quarter revenue.
Reports suggest Chancellor Rachel Reeves is preparing to introduce a new property levy on homes valued above £2 million as part of efforts to close a £20 billion fiscal gap. Revenue is expected to be raised through adjustments to council tax bands.
Asian markets opened positively. Hong Kong’s Hang Seng climbed nearly 2% as technology and healthcare stocks rebounded.
This improvement mirrors Wall Street’s strong finish on Friday, where the Dow Jones Industrial Average rose 1.08% , the S&P 500 gained 0.98% and the Nasdaq Composite added 0.88%.
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