The blue-chip FTSE 100 added 0.43%, while the midcap FTSE 250 was 0.14% higher
The UK’s benchmark FTSE 100 gained on Monday in a broader rally led by travel and leisure shares, as well as aerospace and defence stocks, though losses in commodity-linked companies capped overall gains.
The blue-chip FTSE 100 added 0.43% by 1601 GMT, while the midcap FTSE 250 was 0.14% higher.
The travel and leisure sector gained 1.38% after online train ticket seller Trainline added 9.5%. The company raised its full-year revenue forecast for the second time in less than two months.
Additionally, Melrose’s shares advanced 9.3%, topping the blue chip index and lifting the aerospace and defence sector 0.9%, as aerospace components supplier released risk- and revenue-sharing partnerships explainer.
In contrast, precious metal miners led the sectoral losses and slid 1.7% as gold prices came under pressure against a stronger U.S. dollar and Treasury yields.
Similarly, energy shares dropped 1.6% as oil prices slipped nearly $5 a barrel after Israel’s retaliatory strike on Iran avoided important facilities and did not disrupt energy supplies.
Both BP and Shell were down more than 1.6% each, while Ithaca Energy was the biggest drag on the sector and tumbled 2.4%.
Meanwhile, British business confidence dipped to a four-month low in October ahead of the first budget plan from the country’s new government, a survey showed on Monday, echoing other signs of corporate nervousness about possible tax increases.
Investors paid attention to the budget scheduled for October 30, where UK’s finance minister, Rachel Reeves, faces a tough task of raising the tax revenues needed to invest more in public services and new infrastructure.
On Monday, Prime Minister Keir Starmer backed the case of raising taxes to rebuild public services and fix the foundations of the economy.
The BoE’s monetary policy decision is due next week, where the central bank is widely expected to cut interest rates by 25 bps.
