UK stocks rebound as investors await key data

Published On : 11/12/2024

By Sruthi Shankar and Nikhil Sharma

(Reuters) -Britain’s main stock indexes rose on Monday, joining a broad rally in European markets, as investors awaited key economic data this week for clues on the path of U.S. and British monetary policy.

The blue-chip FTSE 100 rebounded 0.7% from a three-month low touched in the prior session and ended its four-day streak of losses. The midcap FTSE 250 index climbed 1%.

Across the Atlantic, Wall Street traders extended last week’s stock rally fuelled by Donald Trump’s re-election as U.S. president. [.N]

British stocks have been choppy since last week, when Trump’s election victory raised concerns about a potential trade war hurting European economic growth. Underwhelming stimulus steps from China also hurt commodity prices, in turn weighing on mining stocks.

The FTSE 350 mining sector came under fresh pressure on Monday, down 1.8%, as most base metals slipped due to top consumer China’s latest stimulus package falling short of investors’ expectations.

The precious metals and mining sector slid 5.2% as gold prices fell due to stronger dollar as markets expect the Federal Reserve to adopt a cautious approach to policy easing under Trump’s administration. [GOL/]

Investors are awaiting U.S. inflation data as well as British labour market data and September GDP data later this week for hints on how far and fast the Fed and the Bank of England will cut rates this year and next.

Croda rose 5.2%, leading gainers among the FTSE 100 components, after the chemical group posted a 5% growth in third-quarter group sales. It boosted the chemicals sector, up 3.4%.

NatWest gained 3.7% after the bank said it bought back 1 billion pounds ($1.29 billion) worth of its own shares from Britain’s government.

Kainos Group jumped 6.2%, among top gainers in the midcap index, after the IT software provider reported a 1% rise in half-year adjusted pre-tax profit to 38.2 million pounds ($49.2 mln).

Aquis Exchange Plc soared 113% after Swiss stock exchange operator SIX Group said it had agreed to buy the UK-based financial markets service provider in a cash offer that values the business at 207 million pounds ($266.91 million).

(Reporting by Sruthi Shankar and Nikhil Sharma in Bengaluru; Editing by Vijay Kishore and Alex Richardson)

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