London’s benchmark FTSE 100 climbed over 1% amid broader gains led by travel and leisure stocks after an upbeat forecast from gambling group Entain, while investors awaited labour market data later in the week.
The blue-chip FTSE 100 ended up 1.1%, registering biggest one-day gains in a month. The mid-cap FTSE 250 advanced 0.8%, its best day in three weeks.
The travel and leisure stocks rose 1.9%, its highest in six weeks after Entain said its online revenue growth in the second half of this financial year was ahead of its expectations. The gambling group was the top gainer on the FTSE 100 with a 5.3% rise.
Bloomberg News reported HSBC was mulling the combination of its Commercial and Investment banking divisions to eliminate overlapping roles at the lender and cut costs. HSBC shares added 1.9%, while the broader banks index was up 1.7%. HSBC declined to comment.
Most major sub-sectors traded higher, with chemicals and automobiles and parts advancing 1.9% and 1.7% higher, respectively.
London’s FTSE 100 rebounds amid broad gains; Entain soars after upbeat forecast
However, luxury retailer Burberry slipped 4.9% to its lowest price since November 2009, after Barclays downgraded the stock to “underweight” from “equal weight”. The broader personal goods index was the top sectoral decliner, down 3.1% as it hit lowest levels in near 15 years.
British restaurant operator Hostmore plunged over 90.8% after it dropped plans to buy pub chain TGI Fridays.
Meanwhile, a survey of recruiters showed that Britain’s labour market cooled noticeably last month, which could bolster the case for interest rate cuts from the Bank of England.
Investors are focused on labour market data and gross domestic product figures for the country due this week for more clues on the Bank of England’s stance.
The British central bank is widely expected to hold rates at its meeting later this month, while the European Central Bank is expected to cut at its meeting this week.
Source: Brecorder
