Stock prices in London closed higher on Monday, as the focus moves to certain key economic releases and sentiment remains positive.
The FTSE 100 index closed up 42.15 points, 0.5%, at 8,210.25. The FTSE 250 closed up 52.01 points, 0.3%, at 20,677.19, and the AIM All-Share closed up 0.75 of a point, 0.1%, at 766.99.
The Cboe UK 100 ended up 0.4% at 819.75, the Cboe UK 250 closed up 0.3% at 18,102.96, and the Cboe Small Companies ended down 0.1% at 16,780.07.
In European equities on Monday, the CAC 40 in Paris ended down 0.3%, while the DAX 40 in Frankfurt ended down 0.1%.
This week there will be US consumer and producer inflation figures, as well as retail sales.
Last week, expectations spiked for large interest rate cuts from the Federal Reserve. A week ago, the market was pricing in an 85% chance of a 50 basis point cut in September, according to CME’s FedWatch tool. This Monday, the market sees the likelihood of a 50bp cut at about 48.5%, with a 25bp cut at 51.5%.
Wednesday’s consumer price index will be key to informing how market expectations develop.
The pound was quoted at $1.2789 at the London equities close Monday, higher compared to $1.2770 at the close on Friday. The euro stood at $1.0937, up against $1.0925.
Against the yen, the dollar was trading at JP¥147.61, up compared to JP¥146.56.
Stocks in New York were mixed at the London equities close, with the DJIA down 0.4%, the S&P 500 index down 0.1%, and the Nasdaq Composite up 0.2%.
Brent oil was quoted at $80.86 a barrel at the London equities close Monday, rising from $79.54 late Friday.
It crossed the $80 per barrel mark for the first time in over a week, noted ActivTrades analyst Ricardo Evangelista, indicating that the oil market has been on a winning streak, with every trading session closing in the green since last Wednesday.
‘Both supply and demand factors are bolstering oil prices as the outlook for the US economy becomes more positive and fears persist of an all-out war in the Middle East involving Iran and Israel,’ Evangelista said.
Evangelista said there were growing expectations that Iran may launch a military operation in retaliation for Israel’s assassination of Hamas leader Ismail Haniyeh in Tehran last week.
‘If this occurs, it will likely lead to a rapid escalation that could engulf the world’s main oil-producing region in a conflict, severely disrupting the global crude supply. Against this backdrop, there may be further scope for oil price gains,’ he predicted.
Gold was quoted at $2,458.10 an ounce, against $2,429.01.
In the FTSE 100, BT rose 7.4%.
Bharti Global said it has reached an agreement to buy a large stake in BT from Altice UK, sending shares in the London-based telecommunications operator upwards.
The Delhi, India-based telecommunications company said it will buy a 24.5% stake in BT from Altice UK, a subsidiary of Altice Europe NV, which is lead by Israeli billionaire Patrick Drahi.
Bharti said it has entered into a binding agreement with Altice UK to acquire a 9.99% stake of BT’s issued capital imminently, with the balance 14.51% of BT’s share capital to be purchased following receipt of regulatory clearances.
In the FTSE 250, Marshalls fell 2.1%.
The Yorkshire, England-based landscaping products maker said pretax profit rose 29% to £21.5 million in the first half that ended June 30 from £16.7 million the previous year.
Revenue fell by 13% to £306.7 million from £354.1 million, but net operating costs were cut by 15% to £277.8 million from £327.3 million.
CEO Matt Pullen said: ‘The group has delivered a resilient performance in weak end markets. The result in the first half is encouraging and demonstrates that the strategy of diversification, building on the group’s historic core Landscape Products business, through the acquisition and improvement of less cyclical businesses in recent years, has resulted in a more balanced group.’
Meanwhile, Auction Technology fell 6.8%.
Late Friday, the firm said that Breon Corcoran stepped down immediately as chair and from the board, having led Auction Technology through its London listing in 2021. Corcoran, who has CEO of betting firm Flutter Entertainment until 2018, became CEO of spread-betting firm IG Group Holdings back in January.
Auction Technology promoted Senior Independent Director Scott Forbes to chair and Non-Executive Director Suzanne Baxter to senior independent director.
On AIM, Bivictrix Therapeutics tumbled 37%.
The Cheshire, England-based developer of cancer therapies announced its intention to delist from AIM in favour of pursuing funding as a private entity to advance its pipeline.
Management believes the company’s market capitalisation is not reflective of its progress and prospects with the review concluding that the public market offers inadequate liquidity to not support a sufficient fundraise to progress its pipeline.
In Tuesday’s UK corporate calendar, there are half-year results from Flutter Entertainment, Network International and Just Group, among others.
The economic calendar for Tuesday has Japanese and US producer price inflation, UK unemployment figures, and economic sentiment survey data from Germany and the Eurozone.
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