7 days ago
FTSE 100 rises as financial stocks gain; Ukraine talks in focus
Aug 11 (Reuters) - Britain's blue-chip index climbed on Monday, led by financials and consumer-related shares, while investors focused on upcoming economic releases and revived Russia-Ukraine peace efforts.
The FTSE 100 (.FTSE), opens new tab gained 0.4%, while the FTSE midcap index (.FTMC), opens new tab was down 0.4%.
Financial stocks emerged as the day's stand out performers, with life insurers' index (.FTNMX303010), opens new tab reaching its highest level since March 2023 in intraday trading and the banking index (.FTNMX301010), opens new tab closing at a one-week high.
Analysts believe the broader financial sector is benefiting as investors increasingly seek refuge in domestic-focused equities due to global trade uncertainties triggered by U.S. tariff policies.
In consumer-related shares, British American Tobacco (BATS.L), opens new tab and spirits maker Diageo (DGE.L), opens new tab rose 2% and 1.8%, respectively.
Retailer Marks & Spencer (MKS.L), opens new tab resumed click‑and‑collect orders for clothing after a nearly four‑month hiatus following a cyber hack and data theft, sending its shares 3% higher.
Meanwhile, a gauge of the U.K.'s defence sector (.FTNMX502010), opens new tab ended flat after falling to a one-week low earlier in the day.
U.S. President Donald Trump is scheduled to meet Russian counterpart Vladimir Putin in Alaska on August 15 as he seeks to negotiate an end to the war in Ukraine, although Kyiv fears being excluded from the negotiations.
British Prime Minister Keir Starmer has expressed support for peace efforts while emphasizing Kyiv's necessary involvement in any settlement.
Among other movers, Oxford Nanopore Technologies (ONT.L), opens new tab dropped 3% after the biotechnology firm announced CEO Gordon Sanghera's planned departure by 2026, though the broader healthcare sector (.FTNMX201030), opens new tab added 0.7%.
Online trader Plus500 fell 5.7% after announcing disappointing profit margins and unchanged annual forecasts, making it one of the FTSE 250's biggest decliners
Recent surveys indicate British business hiring intentions have fallen to pandemic-era lows, with starting salaries rising at the slowest pace in four years.
Investors now await Tuesday's UK employment data, which is likely to show the jobless rate in the three months to June held at 4.7%, close to a four-year high.
Across the Atlantic, the U.S. inflation report is also due on Tuesday, a key determinant for the Federal Reserve's interest rate decision next week.
