The FTSE 100 index began the week on a cautious note, reflecting investor hesitation ahead of key interest rate decisions in the UK and the US. London’s blue-chip index hovered around 9,287, with an increase of 5 points, showing only marginal movement, with energy and retail stocks lifting sentiment while telecoms lagged.
Shares of Sainsbury PLC surged nearly 6% to £325, their highest level in four years, following market chatter over Argos. Although the supermarket later confirmed it had ended discussions with Chinese e-commerce giant JD.com regarding a potential sale, the news of the talks initially sparked investor enthusiasm.
Analysts at Shore Capital noted that Argos has struggled with thin profit margins and variable demand, making a disposal plausible. Despite negotiations breaking down, Sainsbury’s shares gained significant momentum, underlining renewed optimism among investors.
Centrica PLC rose 2.6% to £164.55 after unveiling plans with US-based X-Energy to construct up to 12 advanced modular reactors at Hartlepool, a site already marked for nuclear development.
The project could generate enough energy to power 1.5 million homes and create about 2,500 jobs, with the first units expected in the mid-2030s pending regulatory approval.
The initiative is part of a broader surge of nuclear partnerships between the US and UK, designed to fast-track approvals and promote clean energy.
Rolls-Royce, another significant participant in the nuclear space, also pushed ahead with its shares up on hopes of regulatory support for a small modular reactor plan.
Insurance specialist Beazley PLC gained 2.8% to £837 after posting steady demand for its risk management services, while Marks & Spencer rose 2.4% to £346.4, extending its recent rally on strong retail performance.
On the downside, BT Group slipped 3% to £200.3 after announcing two new non-executive board appointments from major shareholder Bharti Global.
Although the additions enhanced BT's international capability, the market reacted cautiously to the governance changes, and as a result, the shares fell.
Even though certain sectors had positive momentum, the FTSE 100 displayed little direction. Futures signaled a modest decline as investors awaited fresh updates on UK inflation and unemployment data ahead of the Bank of England’s policy meeting on Thursday.
Across the Atlantic, Wall Street offered mixed cues, with the Nasdaq hitting another record high while the Dow and S&P 500 closed lower.
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This week is expected to be significant, with key monetary policy decisions being made in the UK and the US that will likely change investor sentiment. For now, the FTSE 100 remains quite flat, with positive momentum helping retail and energy stocks, countered by weakness from the telecom sector.