The blue-chip FTSE 100 index gained 0.5%, hitting its highest level since early June
London’s FTSE 100 inched up on Monday, buoyed by energy shares and investor optimism about potential interest rate cuts in the U.S. and the UK, despite Pearson’s drop causing some drag.
The blue-chip FTSE 100 index gained 0.5%, hitting its highest level since early June. In contrast, the mid-cap FTSE 250 remained steady at 0707 GMT after reaching a more than two-year high on Friday. Energy shares led the gains with a 1.5% rise, as oil prices soared over concerns of escalating conflict in the Middle East. Both Shell and BP saw more than 1% rises.
Precious and industrial metal miners also saw gains of 0.4% and 0.7% respectively. Personal care, drug, and grocery shares dropped by 1.4%, influenced by Reckitt Benckiser’s 9.2% decline to its lowest level in over 11 years. Nearly 1,000 lawsuits have been filed against Enfamil maker Reckitt Benckiser and Abbott.
Global sentiment improved after a tech rebound on Wall Street and a U.S. inflation report that remains consistent with expectations for a rate cut in September.
Attention turns to this Wednesday’s U.S. Fed rate decision, expected to adopt a dovish stance. A key jobs report due Friday could further affect the Fed’s outlook. The Bank of England’s monetary policy decision will be closely watched on Thursday with a 56% probability of a rate cut. Major U.S. tech giants Microsoft, Apple, Amazon, and Meta will also release their quarterly earnings this week.
In corporate updates, Pearson declined 3.7% despite a 4% increase in first-half adjusted operating profit, placing it at the bottom of the FTSE 100.
