London close: Stocks higher ahead of UK jobs, inflation data

(Sharecast News) - London stocks finished higher on Monday, reversing earlier losses driven by disappointment over China's weekend stimulus announcement.

The FTSE 100 index ended up 0.47% at 8,292.66 points, while the more domestically-focussed FTSE 250 rose 0.25% to 20,817.19.

In currency markets, sterling was last down 0.16% on the dollar to trade at $1.3046, while it gained 0.16% against the euro, changing hands at €1.1966.

"China is ramping up its activities against Taiwan and the clock continues to tick down to an Israeli strike on Iran, but stock markets have shrugged off these and other worries," said IG chief market analyst Chris Beauchamp.

"The Dow and S&P 500 have climbed to new highs in the lull between US bank earnings, while even the FTSE 100 has edged higher, though it remains firmly stuck in its six-week range.

"European stocks have remained supported by the expectation of a rate cut from the ECB, though whether this justifies the DAX's recent exuberance remains to be seen."

Beauchamp added that OPEC's decision to cut its oil demand forecasts was weighing on crude prices, though both buyers and sellers were aware that the outlook remained cloudy thanks to the lack of any Israeli response to Iran.

"However, it seems that the time for such a response is at hand, which might at least power a short-term surge in oil prices."

Focus on China amid more disappointing data

Economic data releases in the UK and Europe were notably absent on Monday, leaving investors to focus on key reports scheduled later in the week.

UK jobs data was set to be released on Tuesday, followed by inflation figures on Wednesday.

In China, trade data released on Monday revealed weaker-than-expected growth in exports and imports for September.

Dollar-denominated exports increased by 2.4% year-on-year, while imports edged up just 0.3%, both falling short of analysts' expectations for 6% export growth and a 0.9% rise in imports.

The slowdown in exports, a critical element of China's economic recovery, followed a more robust 8.7% increase in August.

Further signs of economic strain came from inflation data showing core consumer prices rose by just 0.1% in September, marking the slowest growth since early 2021.

Tourism-related prices also declined by 2.1%, despite the typically busy Mid-Autumn Festival and Golden Week holiday periods.

While Beijing has introduced stimulus measures to counter the slowdown, the lack of detail around financial policy has left markets uncertain about their impact.

Investors were now awaiting third-quarter GDP, retail sales, industrial production, and fixed asset investment data from the world's second-largest economy.

Gambling shares tumble on tax fears, utilities in the green

On London's equity markets, shares in the UK gambling sector tumbled after reports suggested the government could introduce a £3bn tax raid in the upcoming Budget.

Ladbrokes owner Entain saw the biggest drop, falling 7.35%, while Flutter Entertainment lost 5.58%.

Evoke slid 12.69%, and Rank Group declined by 3.23%.

Elsewhere, recruiter PageGroup also fell, down 1.67%, after reporting a 13.5% drop in third-quarter gross profit to £201.4m.

The company cited challenging market conditions and declining confidence, which affected decision-making among clients and candidates across all regions.

On the upside, utility companies performed well, with Severn Trent up 2.25%, United Utilities gaining 1.99%, and SSE rising 2.49%.

"Defensive stocks were in vogue on the UK stock market, implying that investors are slightly troubled about what might be coming down the line," said AJ Bell investment director Russ Mould.

"Utilities, supermarkets and defence groups led the way, a trio one normally associates with investor nervousness as they turn to companies that should grow in both good and bad economic conditions."

TI Fluid Systems surged 19.71% after announcing it would likely recommend an improved takeover offer from ABC Technologies at 200p per share, a significant premium compared to previous offers.

Ashmore Group rose 6.27% after reporting a $2.5bn increase in assets under management, driven by strong emerging market returns.

Luxury brand Mulberry jumped 11.51% after its major shareholder Challice confirmed it would not sell its 56% stake to Mike Ashley's Frasers Group, despite an increased bid.

Housebuilder Vistry Group rebounded by 3.79%, recovering from last week's losses after profit warnings related to underestimated build costs.

Bunzl also gained 1.9%, following an upgrade from JPMorgan Cazenove, which raised the stock's rating to 'overweight' and increased its price target, citing greater confidence in the company's medium-term margin growth.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,292.66 0.47% FTSE 250 (MCX) 20,817.19 0.25% techMARK (TASX) 4,779.62 0.18%

FTSE 100 - Risers

Vistry Group (VTY) 963.50p 4.39% Bunzl (BNZL) 3,550.00p 2.42% SSE (SSE) 1,874.00p 2.40% BAE Systems (BA.) 1,299.50p 2.32% Severn Trent (SVT) 2,593.00p 2.25% United Utilities Group (UU.) 1,051.00p 1.99% Pershing Square Holdings Ltd NPV (PSH) 3,606.00p 1.58% Sage Group (SGE) 1,025.50p 1.48% AstraZeneca (AZN) 11,936.00p 1.46% Smiths Group (SMIN) 1,643.00p 1.42%

FTSE 100 - Fallers

Entain (ENT) 705.40p -8.03% Flutter Entertainment (DI) (FLTR) 17,430.00p -5.99% Croda International (CRDA) 3,953.00p -2.32% Antofagasta (ANTO) 1,881.50p -1.88% Frasers Group (FRAS) 798.50p -1.54% Mondi (MNDI) 1,447.00p -1.40% Smurfit Westrock (DI) (SWR) 3,454.00p -1.37% Barclays (BARC) 232.90p -1.25% Fresnillo (FRES) 656.50p -1.06% JD Sports Fashion (JD.) 129.85p -0.95%

FTSE 250 - Risers

TI Fluid Systems (TIFS) 181.80p 19.45% Ashmore Group (ASHM) 207.40p 6.58% Harbour Energy (HBR) 276.10p 2.79% TBC Bank Group (TBCG) 2,690.00p 2.66% Tate & Lyle (TATE) 708.00p 2.61% Pennon Group (PNN) 560.00p 2.28% Energean (ENOG) 908.50p 2.08% Chemring Group (CHG) 363.50p 1.94% Games Workshop Group (GAW) 11,590.00p 1.85% Moonpig Group (MOON) 222.50p 1.81%

FTSE 250 - Fallers

Raspberry PI Holdings (RPI) 373.80p -3.31% Carnival (CCL) 1,401.00p -3.11% Auction Technology Group (ATG) 440.00p -2.55% Ocado Group (OCDO) 384.50p -2.44% Close Brothers Group (CBG) 363.20p -2.09% Mitchells & Butlers (MAB) 273.00p -1.80% 4Imprint Group (FOUR) 5,070.00p -1.74% W.A.G Payment Solutions (WPS) 80.00p -1.72% Marshalls (MSLH) 313.00p -1.57% Ithaca Energy (ITH) 102.00p -1.54%