FTSE 100 Rises as UK Government Aims to Attract Global Investors
London’s FTSE 100 saw a positive movement on Monday as the UK Government made efforts to attract more funding from global investors. The blue-chip index rose by 39.01 points, or 0.47%, closing at 8,292.66, with utility firms showing significant gains during the day.
At an international investment summit in London, the Prime Minister and the Chancellor outlined the government’s strategies to boost the economy and encourage increased investment in growing businesses. Plans included cutting through bureaucratic red tape to expedite project implementation in exchange for more investment in the UK. However, Chancellor Rachel Reeves hinted at a possible rise in national insurance for businesses ahead of the upcoming Budget statement at the end of the month.
The volatility in oil prices also persisted, with Brent crude oil experiencing a more than 2% drop to around 77 US dollars per barrel, as global investors remained cautious amidst ongoing developments in the Middle East conflict.
In parallel, the Cac 40 in Paris rose by 0.32%, while the Dax in Frankfurt saw a 0.68% increase. New York’s trading session started strong, with the S&P 500 rising by about 0.6% and the Dow Jones up by 0.3% by the time European markets closed.
The pound exhibited a slight decline of about 0.1% against the US dollar, reaching 1.3055, while it had a marginal increase of about 0.1% against the euro, reaching 1.197.
Regarding company news, Mulberry’s largest shareholder rejected a revised takeover offer from Mike Ashley’s Frasers Group, despite a sweetened £111 million potential deal. Mulberry stated that it was assessing its position with advice from Houlihan, while its shares surged by 17.8% at closing.
On the other hand, recruitment group PageGroup reported a decline in earnings over recent months, with gross profits falling by 16.7% to £201.4 million in the third quarter. The company highlighted that there was no improvement in market conditions in September, typically a period of increased activity post the quieter summer months. Consequently, its shares were down by 0.8% at the close of the trading day.
The top gainers on the FTSE 100 included Vistry, Bunzl, SSE, BAE Systems, and Severn Trent, while the biggest fallers were Entain, Croda, Antofagasta, Frasers, and Mondi.