FTSE 100 Live: Gold Miners Up 5% as FTSE Slips 6 Points, Airlines Weigh on Index

The FTSE 100 slipped six points to 9,210.67 on Monday as strong gains in gold and mining stocks were offset by weakness in airlines and financials. Investor caution prevailed despite record highs in gold prices and steady performance from commodity-linked companies.

BMW Sets Aside £200m for Motor Finance Scandal

BMW’s UK finance arm disclosed it has set aside £206.9 million to cover potential liabilities from the ongoing motor finance mis-selling scandal. 

The company had provisioned just £70.3 million a year earlier, highlighting the growing scale of potential compensation. BMW acknowledged a “considerable degree of uncertainty” around outcomes, noting that a 5% rise in potential payouts would increase its provision by £31 million. 

Gold Miners Surge on Record Bullion Prices

Gold stocks were the standout performers on the FTSE 100 as bullion hit a new record of $3,719 per ounce, extending a 10% monthly rally and standing nearly 40% higher over the past year.

Shares in Endeavour Mining climbed 4.88%, rising 138 points to £2,966, while Fresnillo advanced 4.39%, gaining 100 points to £2,376. 

Glencore added 2.32% at £320.20, and Rio Tinto rose 1.94% to £4,688, reflecting broad strength in the mining sector.

Gold’s surge is being driven by expectations of further US interest rate cuts before year-end, geopolitical tensions, high government debt levels, and central bank demand. 

Analysts suggest the environment remains favourable for safe-haven assets, underpinning the sharp moves in mining equities.

Airlines Drag Amid Cyber Disruption

Airline stocks were a drag on the index after the weekend’s cyber disruption at European airports. IAG and easyJet fell by around 1.5% each, reflecting concerns over operational impacts and potential revenue losses.

NatWest also slipped 0.7% to £504.2 despite Citigroup raising its target price to £640, as banking sentiment remains subdued in a weaker UK economic backdrop.

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Global Market Cues

Wall Street ended last week on a high, with both the Dow Jones and S&P 500 closing at record levels after a quarter-point Fed rate cut. Hopes of two more cuts before year-end further supported sentiment.

In Asia, Japan’s Nikkei 225 rose 1.1% after Friday’s steep losses, while the Shanghai Composite and Hang Seng slipped after China’s central bank kept lending rates unchanged for the fourth consecutive meeting.

Outlook

The FTSE 100 slipped as investors balanced optimism from commodity gains against weakness in airlines and banks. With corporate updates due this week from Kingfisher, JD Sports, Smiths Group, Raspberry Pi, and Saga, along with PMI data for September, traders are likely to stay cautious until clearer signals emerge on the UK’s economic trajectory.