UK Market Update

By Khushi Singh and Purvi Agarwal

(Reuters) – London’s benchmark FTSE 100 climbed over 1% amid broader gains led by travel and leisure stocks after an upbeat forecast from gambling group Entain, while investors awaited labour market data later in the week.

The blue-chip FTSE 100 ended up 1.1%, registering its biggest one-day gains in a month. The mid-cap FTSE 250 advanced 0.8%, marking its best day in three weeks.

Key Highlights

• Travel and Leisure Stocks: Rose 1.9%, its highest in six weeks after Entain reported online revenue growth exceeding expectations for the second half of the financial year.
• Top Gainer: Entain saw a 5.3% rise on the FTSE 100.
• HSBC Update: Bloomberg News reported that HSBC is considering merging its Commercial and Investment banking divisions to cut costs, leading to a 1.9% increase in its shares. The broader banks index was up 1.7%. HSBC declined to comment.
• Sub-sectors Performance: Most major sub-sectors traded higher, with chemicals and automobiles advancing 1.9% and 1.7%, respectively.

Notable Declines

• Burberry: Shares slipped 4.9%, reaching their lowest price since November 2009 after Barclays downgraded the stock.
• Personal Goods Index: The broader personal goods index was the top sectoral decliner, down 3.1%, hitting its lowest levels in nearly 15 years.
• Hostmore: The British restaurant operator plunged over 90.8% after abandoning plans to acquire pub chain TGI Fridays.

Labour Market Insights

A survey indicated that Britain’s labour market cooled noticeably last month, potentially making a case for interest rate cuts from the Bank of England. Investors are keenly waiting for labour market data and GDP figures this week for insights into the Bank of England’s policy stance.

The British central bank is widely expected to hold rates in its upcoming meeting, while the European Central Bank may announce cuts in its meeting this week.