London close: Stocks maintain gains ahead of UK jobs data

London markets closed higher on Monday, with Croda International among the leaders after the specialty chemicals company reported a strong third-quarter sales update.

The FTSE 100 index rose 0.65% to end at 8,125.19 points, and the more domestically-focused FTSE 250 climbed 1% to 20,723.53 points.

In currency markets, sterling was last down 0.38% on the dollar to trade at $1.2872, while it gained 0.22% against the euro, changing hands at €1.2082.

“After a miserable end to last week, the FTSE 100 has managed to rediscover some momentum, rallying 1% thanks to a strong showing from the UK banking sector,” said IG chief market analyst Chris Beauchamp.

“The UK government’s sale of more of its stake is another vote of confidence in NatWest, another step in the long road away from 2008’s emergency government takeover.

“Meanwhile the banking sector’s day was further improved by Barclays, which is still basking in the glow of Trump’s win.”

Beauchamp noted that Friday saw both the Dow Jones Industrial Average and the S&P 500 hitting new highs and reaching “new big round numbers”, with the gains continuing on Monday.

“The prospect of a Republican clean sweep continues to energise investors, and with earnings growth still healthy, investors are also looking forward to a fresh burst of mergers and acquisitions and IPOs that will provide fresh flows to US markets.

“The Trump train rumbles on.”

UK jobs data in focus, Bitcoin surges to new highs

It was a quiet day on the economic release front on Monday, while Tuesday’s release of UK jobs figures was set to draw close attention, with analysts looking for signs of easing wage pressures.

Kathleen Brooks, research director at XTB, highlighted that while the unemployment rate was anticipated to edge up to 4.1% for the three months to October, the modest increase could be insufficient to curb wage growth significantly.

Monthly payrolls were projected to have declined by 13,000 in October, and average weekly earnings could rise to a 3.9% quarterly rate.

Excluding bonuses, weekly earnings were forecast to moderate slightly to 4.7% from 4.9%, signalling persistent wage pressures within the UK labour market.

Elsewhere, Bitcoin soared past $80,000, hitting a record high of $82,197 before settling above $81,000 early on Monday.

The surge followed Donald Trump’s recent US election victory, with market participants speculating that his administration could adopt a more favourable stance toward digital currencies.

Trump’s evolving stance on Bitcoin, coupled with vocal support from his son, Donald Trump Jr, had fuelled optimism for pro-crypto policies, adding momentum to the rally.

The shift came after years of scepticism from Trump, who once dismissed Bitcoin as a “scam,” with the Trump camp now touting cryptocurrencies as alternatives to traditional financial systems.

Croda rises on trading update, Direct Line slips

On London’s equity markets, Croda International climbed 5.24% after the specialty chemicals group reported steady third-quarter performance and maintained its full-year constant-currency profit guidance.

However, Croda noted that the stronger pound could negatively impact its bottom line more than previously anticipated.

NatWest Group advanced 2.38% after announcing that it had repurchased £1bn in shares from HM Treasury, reducing the government’s stake in the bank to 11.4%.

Chief executive Paul Thwaite remarked that the move represented a major milestone toward full privatisation.

Kainos Group rose 6.16%, buoyed by a £30m share buyback and an increase in interim profit, although the software company tempered its optimism, citing caution about its full-year outlook.

Burberry Group saw a 3.7% uptick amid fresh takeover speculation.

Reports indicated Italy’s Moncler could be eyeing a buyout of the British luxury brand, with some Burberry staff reportedly briefed on the potential acquisition.

Trustpilot Group gained 4.86% after Deutsche Bank initiated coverage with a ‘buy’ rating, while Vistry Group recovered 2.37% after last week’s steep drop following a profit warning.

John Wood Group also rebounded, climbing 6.66% after last week’s 60% slump, as it announced a governance review to address significant project write-offs.

On the downside, Direct Line Insurance Group slipped 1.88% following news it would cut 550 jobs in a restructuring effort, aiming to stabilise its struggling motor insurance business.

The insurer reported a decline in third-quarter gross written premiums to £836m from £1.28bn a year earlier.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said Direct Line continues to battle “with internal demons and a tough trading environment”.

“Cutting costs is one angle of attack to try and bring performance back on track, the other angle must come from stabilising the customer base, especially in the all-important motor division,” he said.

“Another 71,000 own-brand motor customers were lost over the third quarter as premiums were 3% higher than last year on average.

“The good news is that the rate of decline in customer numbers is slowing, as insurance prices are now starting to come down after some mammoth hikes were put through earlier in the year.”

Meanwhile, heavyweights in the mining sector faltered, with Rio Tinto, Anglo American, and Glencore all posting losses, down 1.94%, 1.92%, and 0.32%, respectively, as commodity prices weighed on the sector.

Outside the FTSE 350, Aquis Exchange surged by 113.64% after agreeing to a £225 million takeover by Switzerland's Six Exchange Group.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,125.19 0.65%
FTSE 250 (MCX) 20,723.53 1.00%
techMARK (TASX) 4,657.36 1.16%

FTSE 100 - Risers

Croda International (CRDA) 3,793.00p 5.24%
NATWEST GROUP (NWG) 395.00p 3.73%
Barclays (BARC) 260.65p 3.64%
Rolls-Royce Holdings (RR.) 572.00p 3.40%
Sage Group (SGE) 1,075.00p 3.22%
Lloyds Banking Group (LLOY) 54.54p 2.75%
Intermediate Capital Group (ICG) 2,250.00p 2.74%
DCC (CDI) (DCC) 4,966.00p 2.43%
Scottish Mortgage Inv Trust (SMT) 927.20p 2.39%
Vistry Group (VTY) 755.50p 2.37%

FTSE 100 - Fallers

Fresnillo (FRES) 676.00p -3.43%
Sainsbury (J) (SBRY) 243.40p -2.33%
Rio Tinto (RIO) 4,850.00p -1.94%
Antofagasta (ANTO) 1,656.50p -1.92%
Anglo American (AAL) 2,326.50p -1.92%
Marks & Spencer Group (MKS) 367.90p -1.76%
Glencore (GLEN) 388.50p -1.60%
Frasers Group (FRAS) 750.00p -0.92%
JD Sports Fashion (JD.) 119.65p -0.91%
Imperial Brands (IMB) 2,351.00p -0.68%

FTSE 250 - Risers

PureTech Health (PRTC) 169.00p 7.78%
Wood Group (John) (WG.) 61.55p 6.40%
Kainos Group (KNOS) 844.00p 6.16%
Telecom Plus (TEP) 1,760.00p 5.90%
Bank of Georgia Group (BGEO) 4,830.00p 5.57%
Keller Group (KLR) 1,692.00p 5.49%
Marshalls (MSLH) 339.00p 5.28%
Trustpilot Group (TRST) 269.00p 4.67%
TBC Bank Group (TBCG) 3,200.00p 4.58%
Trainline (TRN) 411.80p 4.46%

FTSE 250 - Fallers

Centamin (DI) (CEY) 145.30p -5.95%
Endeavour Mining (EDV) 1,571.00p -5.87%
Pets at Home Group (PETS) 283.80p -5.02%
Burberry Group (BRBY) 780.80p -3.33%
Hochschild Mining (HOC) 222.00p -3.06%
Direct Line Insurance Group (DLG) 160.60p -2.78%
PPHE Hotel Group Ltd (PPH) 1,180.00p -2.48%
4Imprint Group (FOUR) 5,440.00p -1.98%
Bluefield Solar Income Fund Limited (BSIF) 100.20p -1.76%
BlackRock World Mining Trust (BRWM) 521.00p -1.70%