London midday: Stocks up as investors cheer Bessent as US Treasury Secretary

London stocks were still firmer by midday on Monday as investors welcomed US President-elect Donald Trump’s decision to appoint billionaire fund manager Scott Bessent as Treasury Secretary.

The FTSE 100 was up 0.2% at 8,275.80.

Russ Mould, investment director at AJ Bell, said: "The FTSE 100 made a decent start on Monday morning after US president-elect Donald Trump’s pick for Treasury secretary got a warm reception from the market.

"Hedge fund manager Scott Bessent is perceived as being a relatively conventional and safe pair of hands candidate and the market gains in Europe following the news were matched in Asia. Importantly, Bessent is seen as being less aggressive on tariffs than some of the rhetoric espoused by Trump on the campaign trail.

"A fall in bond yields in response to his unveiling suggests some of the concern about a new wave of inflationary pressures from import tariffs has eased and that Bessent might be able to do something to bring the US deficit under control. He has also spoken in favour of corporate tax cuts - solidifying a part of the new administration’s policy agenda which appeals to investors."

In equity markets, Rentokil Initial advanced as it appointed Paul Edgecliffe-Johnson as chief financial officer with effect from 1 January 2025.

He will succeed Stuart Ingall-Tombs, who is retiring and will step down from the board at the end of the year after 17 years with the company, most recently as CFO for four years.

Anglo American gained after agreeing to sell the portfolio of steelmaking coal mines that it operates in Australia to Peabody Energy for $3.77bn in cash as part of its pivot to be a copper, premium iron ore and crop nutrients business.

Shares in ITV surged following a report over the weekend that potential suitors have begun circling the broadcaster again after a prolonged period of share price weakness and renewed questions about its long-term strategic destiny.

According to Sky News, a number of possible bidders for parts or all of the company, whose biggest shows include Love Island, have in recent weeks held early-stage discussions about teaming up to pursue a potential transaction.

Barclays rose despite news it had been fined £40m by the Financial Conduct Authority over alleged secret payments to Qatar during the 2008 global financial crisis to avoid a UK government bailout.

Weir Group was boosted by an upgrade to ‘buy’ at Deutsche Bank.

On the downside, B&Q and Screwfix owner Kingfisher tumbled as it nudged down the midpoint of its full-year profit guidance after a mixed third quarter, in which group sales fell 0.6%.

The company said 2024 adjusted pre-tax profit is expected to come in between £510m and £540m, compared with a previous forecast range of £510m to £550m.

Market Movers

FTSE 100 (UKX) 8,275.80 0.17%
FTSE 250 (MCX) 20,591.70 0.05%
techMARK (TASX) 4,715.87 0.10%

FTSE 100 - Risers

JD Sports Fashion (JD.) 98.64p 5.54%
Rentokil Initial (RTO) 414.30p 1.87%
Weir Group (WEIR) 2,216.00p 1.84%
Anglo American (AAL) 2,401.50p 1.80%
Barratt Redrow (BTRW) 421.00p 1.79%
easyJet (EZJ) 525.80p 1.78%
Glencore (GLEN) 387.35p 1.72%
Mondi (MNDI) 1,215.00p 1.63%
Flutter Entertainment (DI) (FLTR) 21,910.00p 1.53%
Spirax Group (SPX) 6,885.00p 1.40%

FTSE 100 - Fallers

Kingfisher (KGF) 253.50p -14.04%
Fresnillo (FRES) 635.00p -2.68%
Whitbread (WTB) 2,853.00p -1.62%
Vistry Group (VTY) 633.50p -1.48%
Tesco (TSCO) 348.90p -1.41%
British Land Company (BLND) 383.40p -1.08%
Haleon (HLN) 377.00p -0.87%
Smith (DS) (SMDS) 588.50p -0.84%
Next (NXT) 9,688.00p -0.78%
Rolls-Royce Holdings (RR.) 541.60p -0.73%

FTSE 250 - Risers

ITV (ITV) 70.50p 7.63%
Ocado Group (OCDO) 317.40p 3.69%
XPS Pensions Group (XPS) 367.00p 3.67%
Aston Martin Lagonda Global Holdings (AML) 109.40p 3.50%
CMC Markets (CMCX) 273.00p 3.41%
Baillie Gifford US Growth Trust (USA) 267.50p 2.88%
Ithaca Energy (ITH) 118.80p 2.77%
Just Group (JUST) 145.00p 2.69%
Me Group International (MEGP) 219.50p 2.33%
Trainline (TRN) 414.40p 1.97%

FTSE 250 - Fallers

Hochschild Mining (HOC) 217.50p -2.90%
Clarkson (CKN) 3,825.00p -2.80%
IP Group (IPO) 41.75p -2.57%
W.A.G Payment Solutions (WPS) 80.00p -1.96%
Dunelm Group (DNLM) 1,132.00p -1.91%
Edinburgh Worldwide Inv Trust (EWI) 171.00p -1.72%
Pets at Home Group (PETS) 275.20p -1.71%
Drax Group (DRX) 645.00p -1.53%
Endeavour Mining (EDV) 1,569.00p -1.51%
Mitie Group (MTO) 107.20p -1.47%