FTSE 100 gets Halloween treat as stocks fly to five-week high

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Onden’s top stocks have enjoyed a Halloween rebound and the FTSE 100 ended the month at a five-week high.

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The blue-chip index rose to an all-time high ahead of the former chancellor’s mini-budget on 23 September, which punctured the stock market through October and sent sterling down.

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The FTSE 100 closed 46.86 points or 0.66% higher at 7,094.53.

The index was pushed by strong gains for energy firm Centrica, which on Friday announced it was reopening its giant gas storage facility, Raf.

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The Bank of England’s Monetary Policy Committee (MPC) will raise the base rate by 75 basis points on Thursday, amid hopes that gains in UK high-street banks have also helped.

Higher interest rates can boost lenders’ profits because it means they get higher returns from loans, although there is a risk that potential defaults from vulnerable customers will offset the profits.

Banks have been a major player here, as expectations of tighter interest rates boost earnings forecasts for the sector, a point many major players have highlighted in their results.

Meanwhile, the pound saw a decline in its recent daily gains against the US dollar during Monday.

When European markets closed, it was down 1% against the dollar at 1.1494, having fallen more than a percentage point from the day’s high.

Chris Beauchamp, chief market analyst at online trading platform IG, said: “The FTSE 100 has managed to hit a one-month high, while Wall Street’s gains were lower in early trading.

“Banks have been a key player here, as expectations of tighter interest rates boost earnings forecasts for the sector, a point that several key players have highlighted in their results.

“Meanwhile, the pound’s fall today below $1.15 provided another tailwind for the index, but modest losses in the US could be a harbinger of things to come if the Fed is bullish this week.”

Elsewhere in Europe, German DAX posted strong gains during the day, but the stock was up only 0.08% at market close. The French CAC was down 0.1%.

US stocks started the week on the back foot ahead of the much-anticipated Federal Reserve rates meeting this week. The S&P 500 is down 0.74% and the Dow Jones is down 0.41% at the close of European markets.

Sterling was also down 0.16% against the euro at 1.1629.

In company news, troubled UK battery start-up BritishVolt is preparing to potentially fall into administration after failing to secure more funding for development of its Northumberland Gigafactory.

It sent shares in FTSE 100-listed Glencore Slipping as the metals giant financed tens of millions of pounds in BritishVolt.

Glencore shares had recovered by the end of the day, and were up 0.55%.

Advertising giant M&C Saatchi saw its takeover offer from consultancy Next Fifteen expire after shareholders voted against the deal.

M&C Saatchi saw its share price drop before a £310 million acquisition was agreed, affecting the value of the deal.

Shares of M&C Saatchi had gained 0.36% at the close of the market.

AIM-listed engineering conglomerate TP Group, on the other hand, agreed a £17.5 million takeover by rival Science Group, leading its shares to rise more than 180% on Monday.

The biggest risers on the FTSE 100 were IAG, up 6.28p to 121.56p, Centrica, up 3.46p to 76.62p, NatWest Group, up 9.9p to 234.8p, ​​Flutter Entertainment, up 335p to 11,580p, and CocaCola HBC, up 50.5 p to 1,902.5p.

The biggest losers in the FTSE 100 were Intertek, down from 104p to 3,654p, Croda, down from 106p to 6,760p, Mondi, down from 23p to 1,462.5p, RS Group, down from 14p to 958.5p, and Spirax-Sarco, down from 150p to 10,750. P.

Credit: www.standard.co.uk /

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