London stocks closed modestly higher on Monday, as gains in mining shares helped offset losses in automakers, while investors awaited key economic data and comments from U.S. Federal Reserve officials.
The benchmark FTSE 100 was up 0.11%, while the domestically-focused FTSE 250 rose 0.07%.
Precious metal miners rose 6.1%, the most among sectors, as gold hit a record high on rising expectations of a more dovish rate path in the U.S.
Gold miner Endeavour Mining climbed 6.9% to the top of the FTSE 100 while Hochschild jumped 8.4% among midcap stocks.
Other miners, including Glencore and Rio Tinto rose about 2% each, while the broader industrial metal miners index gained 1.6%.
However, gains were kept in check as British automobiles and parts stocks fell 2.3%, tracking losses in the broader European automobile sector after Porsche scaled back plans for its electric vehicle rollout, prompting the luxury sports car maker and its parent Volkswagen to slash their 2025 profit outlooks.
British luxury carmaker Aston Martin and automotive parts supplier Dowlais Group slipped 1.5% and 2.5%, respectively.
Sterling’s strength against the dollar also limited gains in export-oriented firms, as investors paused after Friday’s selloff driven by UK fiscal concerns.
The Bank of England left key interest rates unchanged last week as it contended with sticky inflation and uncertainty around jobs and growth.
Caution dominated broader sentiment after a report on Friday showed Britain’s borrowing exceeded official forecasts, adding pressure on finance minister Rachel Reeves ahead of her November budget.
London-listed airlines declined due to delays at European airports following a reported cyberattack. EasyJet British Airways owner IAG and Wizz Air fell between 1.3% and 3.2%.
British food ingredients maker Tate & Lyle fell about 6.4%, the most on the FTSE 250, after Morgan Stanley downgraded the stock to “underweight” from “equal-weight”.
Investors were watching for remarks from the newly appointed Fed governor Stephen Miran later Monday, while Fed Chair Jerome Powell is due to speak on Tuesday after last week’s 25-basis-point rate cut.
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