London stocks rose on Monday, with financial and industrial names leading gains, while investors focused on a potential U.S. government shutdown.
The bluechip index gained 0.2% and the domestically focused FTSE 250 rose 0.9%, starting the week on a strong footing.
An index of the UK’s non-life insurers rose 2.1%.
Healthcare stocks climbed 1%, buoyed by pharmaceutical giant GSK’s 2.1% rise following an announcement that CEO Emma Walmsley willbe replaced by company insider Luke Miels.
“It seems that investors believe having a new man at the helm, someone who understands the business inside and out, could deliver fresh impetus to a business which is now on the right foot,” said Danni Hewson, head of financial analysis at AJ Bell.
Housing index surged 2.2%, with Berkeley up 3.5% after the homebuilding company named divisional finance director Neil Eady as its chief financial officer.
Metal miners rose 2.1% as safe-haven gold’s prices continued their record rally, fuelled by expectations of U.S. rate cuts and concerns about a potential government shutdown.
President Donald Trump is scheduled to meet with congressional Democratic and Republican leadership later in the day to discuss extending government funding.
Without an agreement, a shutdown would commence on Wednesday, disrupting the release of key economic data, including the September non-farm payrolls report later this week.
On the domestic front, British finance minister Rachel Reeves delivered a staunch defence of her commitment to “economic responsibility,” pushing back against calls to relax fiscal rules.
Moreover, Bank of England Deputy Governor Dave Ramsden said Britain’s labour market had weakened and wage growth was normalizing, reinforcing his confidence that interest rates could be reduced and that inflation would return to the BoE’s target.
Looking ahead, investors will be monitoring second-quarter GDP data, due on Tuesday.
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