The FTSE 100 saw gains on Monday, closing up by 39.01 points, or 0.5%, at 8,292.66, while the FTSE 250 rose 52.26 points, or 0.3%, to 20,817.19. Despite these positive moves, the AIM All-Share dropped slightly, down 0.08 of a point at 733.77. Elsewhere, the Cboe UK 100 increased by 0.3%, and other indices followed similar trends, with European equities rising in Paris and Frankfurt.
Prime Minister Keir Starmer, addressing an investment summit in London, urged businesses to invest in the UK, promising to cut red tape and push projects forward. His message was that the UK is ready to rebuild its economy after Brexit, with major investment deals expected soon. Starmer also dispelled rumours about potential hikes in capital gains tax, dismissing them as inaccurate.
In the foreign exchange market, the pound weakened slightly against the dollar, quoted at $1.3052, compared to $1.3074 on Friday. Meanwhile, the euro also fell, and the dollar gained strength against the yen.
Across the Atlantic, US markets performed well, with the Dow Jones, S&P 500, and Nasdaq all showing gains at the close of London trading. However, gambling firms in the UK faced pressure amid reports of a potential tax raid that could significantly impact profits. A proposal to double taxes on bookmakers and online gambling operators created concerns, leading to sharp declines in share prices. Entain dropped by 7.7%, while other companies like Flutter Entertainment and Rank also saw their shares decline.
In other corporate news, Bunzl’s stock rose by 2.4% following an upgrade from JPMorgan, and Mulberry experienced a 12% jump after rejecting an improved takeover offer from Frasers. On the downside, PageGroup’s shares fell 0.8%, as it reported challenging conditions in recruitment markets, with declining profits in the third quarter. Additionally, Oxford BioDynamics plunged by 54% after announcing it would need new funding by 2025 and initiating a strategic review of its operations.
Commodity markets showed declines, with Brent oil falling to $77.19 a barrel and gold dropping to $2,646.29 an ounce. Looking ahead, the UK’s economic calendar includes unemployment and average earnings figures, along with a eurozone industrial production report.
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