London’s FTSE 100 bounced back on Monday after six consecutive days of declines. Gains were primarily driven by the travel and leisure sectors, following a positive outlook from gambling group Entain. Meanwhile, investors were looking ahead to important labour market data later in the week. By 0715 GMT, the FTSE 100 had risen by 0.6%, while the mid-cap FTSE 250 was up 0.4%. This came after the FTSE 100 experienced its worst weekly performance since October 2023.
Among the sectors, travel and leisure stocks led the way with a 1.3% increase. Entain contributed significantly, rising by 5% after reporting that its online revenue growth in the second half of the financial year had surpassed expectations. Industrial metal miners and energy shares also saw modest gains of 1.2% and 0.7% respectively, while heavyweight banks advanced 1.1%.
However, not all sectors saw gains. Personal goods stocks slipped by 0.8%, largely due to a 1.7% drop in Burberry’s share price. This followed a downgrade from Barclays, which shifted its rating from “equal-weight” to “underweight”.
A survey of recruiters indicated that Britain’s labour market had noticeably cooled in the previous month. This may strengthen the case for the Bank of England to consider interest rate cuts. Investors are also awaiting GDP figures and other key labour data this week, hoping for more insight into the Bank’s position on potential rate reductions.
The Bank of England is expected to maintain its current rates in its upcoming meeting, while the European Central Bank is anticipated to cut rates. At the same time, data from the United States sparked concerns about economic growth, leaving investors uncertain about the future course of the Federal Reserve’s monetary policy, which weighed on market sentiment globally.
In other news, British restaurant operator Hostmore saw its shares plummet by more than 70% after abandoning its plans to acquire the pub chain TGI Fridays.
The markets seem to be in a state of flux, with investors waiting for more concrete data on labour and economic conditions before making any significant moves. The mixed performance across sectors reflects the uncertainty in both local and global markets.
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