Key Takeaways
- Britain’s FTSE 100 index rose 1% to 10,656.28 points.
- Financial and medical equipment stocks led the gains.
- Oil prices increased by 2% to $106.76 a barrel.
Britain’s FTSE 100 index closed higher on Monday, gaining nearly 1% to 10,656.28 points. The market was buoyed by financial and medical equipment stocks, which showed significant gains.
Financial stocks, including HSBC Holdings, Standard Life, Lloyds Banking Group, Barclays, NatWest, and Standard Chartered, saw a rise between 1.7% and 2.3%. Medical equipment and services shares also saw a 2.75% increase.
The market's performance came as investors looked ahead to crucial US inflation data and UK GDP readings scheduled for release this week. These figures are expected to provide further insight into the economic outlook.
Oil prices surged by 2% to $106.76 a barrel, nearing two-week peaks, following attacks on Saudi Arabia. However, the market also considered the potential for higher supplies from Russia and a Russia-Ukraine ceasefire on energy facilities.
UK Finance Minister John Healey is set to attend meetings with foreign counterparts at the International Monetary Fund’s annual meetings this week. Healey is facing pressure ahead of his first annual budget on October 28, which aims to address a £36 billion fiscal gap and higher borrowing costs.
Healey stated, 'I will work with our international partners to keep trade moving, support families and businesses, and make Britain’s economy stronger and more resilient,' ahead of his address at the IMF meetings.
Upper Crust chain owner SSP Group saw a 2.2% decline in its shares after brokerage Berenberg cut its target price to £225 from £245. In contrast, Burberry shares rose 1.9% following a 1.1% increase in Frasers' stake to 7.42% from 6.32%.
Market participants are closely watching US inflation data due on Wednesday and UK GDP figures for August, scheduled for release on Thursday, for further guidance on the economic outlook.
