UK’s FTSE 100 index showed modest gains on Monday, buoyed by travel and leisure shares, with Trainline’s stock seeing a significant boost after the company revised its revenue forecast upwards. Despite the index’s rise by 0.2% by 0900 GMT, the energy sector weighed on the market as oil prices declined. The midcap FTSE 250 also gained 0.4% in early trading.
Travel and leisure stocks led the gains, climbing by 2% as Trainline surged 10.5% on news that it now expects full-year revenue growth of 11%-13%, revising its previous top-end forecast of 7%-11%. Alongside Trainline, EasyJet and British Airways’ parent company IAG rose 4.1% and 2.5% respectively, benefiting from the likelihood of lower fuel costs.
On Friday, London stocks wrapped up the week with losses, as investors analysed a mix of corporate earnings and anticipated the UK’s upcoming budget on 30 October. Energy shares took a hit, sliding by 1.8% as crude oil prices dropped more than $3 per barrel. This decline followed an Israeli strike on Iran that avoided critical oil and nuclear sites, leaving the global energy supply uninterrupted. BP and Shell both dipped nearly 1.7%, impacting the FTSE 100.
In addition to energy, precious metal miners dropped by 1.3% due to a dip in gold prices, pressured by a stronger U.S. dollar. British business confidence also slipped to a four-month low in October, with companies showing concern about potential tax hikes ahead of the government’s budget announcement.
The forthcoming budget on 30 October has become a focal point for investors, as the Chancellor Rachel Reeves faces the challenging task of balancing the need for increased tax revenues to support public services and infrastructure investment, amid growing corporate caution.
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