London stocks experienced a modest rise on Monday, following a turbulent week marked by declines. The blue-chip FTSE 100 index increased by 0.7%, while the mid-cap FTSE 250 index saw a 0.3% uptick by 0711 GMT. This recovery came after both indices closed out their second consecutive week of losses on Friday.
Most sub-sectors saw positive movement, with personal goods leading the way, rising by 1.5%. Burberry, a significant player in the sector, contributed to this gain with a 1.6% increase in its share price. Energy shares also saw a 1% rise, buoyed by climbing oil prices, which were supported by reduced fears of a U.S. recession and ongoing geopolitical tensions in the Middle East. Precious metal miners benefitted as well, climbing 1.2% as gold prices moved upward. However, the construction and materials sector was an exception, dipping by 0.4%. This was largely due to a 3.5% drop in shares of Marshalls, a supplier of landscaping and roofing products, following a 19% decline in its half-year profits.
Investors are now focused on upcoming U.S. consumer price index data, expected on Wednesday, to gain insight into the Federal Reserve’s potential interest rate decisions in September. Last week’s reports of a weak U.S. labour market sparked recession fears, triggering a selloff in equities. However, later job data readings suggested these fears might have been exaggerated, allowing for some recovery in market sentiment during a volatile period.
In the UK, inflation figures and gross domestic product data are anticipated later this week, as investors look ahead to the Bank of England’s next rate cut. Meanwhile, BT Group shares surged by 6.3% after India’s Bharti Enterprises announced plans to acquire a 24.5% stake in the telecom giant for approximately 3.2 billion pounds ($4 billion), buying out the company’s top shareholder. This news propelled BT Group to the top of the FTSE 100 index.
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