The UK’s benchmark FTSE 100 kicked off the week climbing higher on Monday, boosted by mining shares, while investors looked ahead to this week’s domestic GDP data to gauge the Bank of England’s policy outlook.
The blue-chip FTSE 100 rose 0.3%, while the midcap FTSE 250 was flat at 0930 GMT. European stocks hovered around six-week highs after signs of fresh stimulus to support China’s slowing economy.
Shares of miners Glencore, Antofagasta and Rio Tinto jumped between 2.6% and 3.3%, helping the mining to lead the sectoral gains.
The energy sector added 1.2% as oil prices climbed after the fall of Syrian President Bashar al-Assad’s regime introduced greater uncertainty to the Middle East.
The personal goods also added to the gains, advancing 1.6%, while aerospace and defence companies were a drag, falling 1.1%.
Among individual stocks, Whitbread slipped 2% after UBS cut the target price on the hotel group to 4,200p from 4,400p.
Investors will now turn their attention to comments from Bank of England Deputy Governor Dave Ramsden on financial stability at 1300 GMT.
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During the data-heavy week, the focus will be on the U.K. gross domestic product estimate for October that could provide insights on the central bank’s interest rate trajectory.
Traders are pricing in an 89.2% chance of BoE holding the interest rates at its next policy meeting on Dec. 19, while also expecting about 76-basis-point worth of rate cuts by the end of next year.
Demand for workers in Britain collapsed last month after the new Labour government’s first budget, a survey showed, adding to other signs of the impact of the tax increases on employers.
Stateside, investors awaited key inflation data this week that could cement a rate cut in December by the US Federal Reserve.
Source: Brecorder
