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London’s top stock index reached its highest level this month, bouncing back after a dip in Friday’s trading session. Miners and housebuilders led the charge on the FTSE, while the defense sector struggled, with BAE Systems and Rolls-Royce seeing declines due to reports that Germany would halt direct financing for new military aid to Ukraine.
The FTSE 100 climbed 45.53 points, or 0.55%, closing at 8,356.94. Across Europe, main indexes also saw gains, with the Cac 40 in France up 0.7% and Germany’s Dax rising 0.58%, fueled by renewed hopes for interest rate cuts.
Wall Street opened higher as markets anticipated a key week for economic updates, including the Jackson Hole Economic Symposium. The US dollar slipped to a seven-month low, boosting the pound, which rose 0.29% to $1.298, its highest level against the dollar in a month.
In corporate news, housebuilder Barratt Developments saw shares rise after announcing it would finalize its acquisition of rival Redrow later this week, despite local competition concerns. Shares in Barratt closed 3.4% higher at 554p.
Trading platform Plus500 was another standout, with shares up 4.11% after the company raised its profit forecast and boosted its dividend, thanks to a record number of new retail customers in the first half of 2024.
Fever-Tree also saw gains, with shares up 1.96% after Deutsche Bank brokers noted the company’s strong positioning in the premium drinks market, despite lowering their target for the stock.
Oil prices remained low, with Brent crude down 0.18% to $78.15 a barrel, as ongoing energy demand concerns weighed on the market.
The biggest risers on the FTSE 100 included Barratt Developments, Glencore, Endeavour Mining, Fresnillo, and Burberry, while Hikma Pharmaceuticals, Spirax Group, Admiral Group, BAE Systems, and Rentokil were among the biggest fallers.
The FTSE 100’s strong performance was partly due to the weakness of sterling against the dollar, which benefited the many international companies on the index that earn revenue in dollars and report profits in sterling. The pound’s drop to $1.234 marked its lowest point against the US dollar in about five months.
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