London close: Stocks maintain gains on quieter Monday

London's financial markets closed on a positive note on Monday, with both major indices registering gains as investor sentiment improved following last week's volatility.

The FTSE 100 rose 0.52% to end the day at 8,210.25 points, while the FTSE 250 edged up 0.25%, closing at 20,677.19 points.

In currency markets, sterling was last up 0.11% on the dollar to trade at $1.2775, while it remained unchanged against the euro, changing hands at €1.1687.

“It has been a slow start to the week for markets, in what has been a remarkable sea-change compared to last week’s frenetic movements,” said IG chief market analyst Chris Beauchamp.

“The August lull is firmly upon us, and while equities on Wall Street are continuing to claw back gains, a cautious atmosphere prevails ahead of Wednesday’s inflation readings for the US and UK.

“Things might have calmed down but the nervousness hasn’t gone away entirely.”

Beauchamp added that oil had surged to its highest level in more than a week as expectations of an Iranian strike on Israel rose.

“The risk had appeared to recede last week, or at least had been pushed back, but an attack is on the cards once more, powering oil’s move higher from last week’s two-month low.”

OPEC reduces demand forecast, BoE’s Mann comments in focus

Investors were earlier digesting comments from Catherine Mann, a member of the Bank of England's monetary policy committee, who cautioned against complacency in the fight against inflation, despite recent declines in the headline inflation rate.

Speaking on a Financial Times podcast, Mann expressed concern about ongoing inflationary pressures, noting that goods and services prices are expected to rise again, and that wage pressures in the economy could take years to subside.

She highlighted that businesses still plan significant wage and price increases, indicating potential challenges for the coming year.

Mann pointed to the possibility of a “structural” upward trend in wages and prices, which could be difficult to reverse.

Elsewhere on the economic front, the Organisation for Petroleum Exporting Countries (OPEC) reduced its forecast for global oil demand growth in 2024.

OPEC said it now expected demand to grow by 2.1 million barrels per day, a reduction of 135,000 barrels per day from its previous estimate.

The downgrade was put down to weaker-than-expected economic data in the first half of the year and a softening outlook for demand in China.

Despite the revision, the growth rate remained above the historical average.

Non-OECD countries were expected to drive most of the demand increase, with significant contributions from China, the Middle East, and India.

OPEC also noted that oil supply from non-member countries was projected to rise steadily through 2024 and 2025, with the US, Canada and Brazil being key contributors.

BT Group jumps, Marshalls slips on fall in profits

On London’s equity markets, BT Group jumped 7.36% after Bharti Global acquired a 24.5% stake in the telecom company from Altice UK.

The move was welcomed by BT's CEO, Alison Kirkby, who described it as a strong endorsement of the company’s long-term value and strategy.

TP ICAP also performed well, rising 3.55%.

The financial services firm continued its upward trajectory following last week’s announcement of a third share buyback programme worth £30m, alongside a 10% increase in interim adjusted pre-tax profit.

On the downside, Marshalls fell 2.06% after reporting a 20% drop in first-half adjusted pre-tax profit, citing weak end markets as a contributing factor.

In broker-driven movements, JD Sports Fashion dropped 4.07% after Deutsche Bank downgraded the stock from ‘hold’ to ‘sell’.

Conversely, Diageo rose by 1.03% following an upgrade from RBC Capital Markets, which improved its rating from ‘underperform’ to ‘sector perform’.

Auction Technology Group experienced a steep decline, falling 6.84% after Peel Hunt reduced its price target for the stock.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,210.25 0.52%
FTSE 250 (MCX) 20,677.19 0.25%
techMARK (TASX) 4,814.81 0.73%

FTSE 100 - Risers

BT Group (BT.A) 141.50p 8.43%
Entain (ENT) 580.40p 3.98%
Centrica (CNA) 127.30p 3.29%
BAE Systems (BA.) 1,303.50p 2.04%
Antofagasta (ANTO) 1,879.50p 1.79%
WPP (WPP) 689.60p 1.68%
IMI (IMI) 1,760.00p 1.38%
Marks & Spencer Group (MKS) 323.20p 1.38%
Intermediate Capital Group (ICG) 2,018.00p 1.36%
BP (BP.) 439.60p 1.35%

FTSE 100 - Fallers

JD Sports Fashion (JD.) 120.35p -4.07%
B&M European Value Retail S.A. (DI) (BME) 444.60p -2.22%
Burberry Group (BRBY) 671.00p -2.02%
Hikma Pharmaceuticals (HIK) 2,002.00p -1.77%
Whitbread (WTB) 2,814.00p -1.44%
CRH (CDI) (CRH) 6,416.00p -1.35%
Flutter Entertainment (DI) (FLTR) 14,685.00p -1.28%
Unite Group (UTG) 934.00p -1.11%
easyJet (EZJ) 431.10p -1.05%
Haleon (HLN) 373.20p -1.01%

FTSE 250 - Risers

Lancashire Holdings Limited (LRE) 652.00p 4.49%
Bakkavor Group (BAKK) 153.00p 4.44%
Hochschild Mining (HOC) 173.60p 4.08%
TP Icap Group (TCAP) 233.50p 3.55%
Playtech (PTEC) 536.00p 2.88%
IntegraFin Holding (IHP) 377.00p 2.86%
Bank of Georgia Group (BGEO) 4,105.00p 2.75%
Harbour Energy (HBR) 293.10p 2.52%
Abrdn (ABDN) 153.70p 2.51%
Renewi (RWI) 659.00p 2.48%

FTSE 250 - Fallers

Auction Technology Group (ATG) 422.00p -6.95%
Watches of Switzerland Group (WOSG) 370.20p -3.13%
Dr. Martens (DOCS) 67.85p -3.00%
Trustpilot Group (TRST) 190.00p -2.96%
4Imprint Group (FOUR) 5,340.00p -2.73%
Hill and Smith (HILS) 1,988.00p -2.55%
Derwent London (DLN) 2,298.00p -2.14%
Wizz Air Holdings (WIZZ) 1,348.00p -2.11%
Marshalls (MSLH) 333.00p -2.06%
Aston Martin Lagonda Global Holdings (AML) 136.30p -2.01%