UK Stocks Rise with Commodity Shares Leading the Way
(Reuters) - British stocks closed higher on Monday, driven by energy and mining shares, while investors geared up for a slew of central bank decisions this week including from the Bank of England.
The benchmark FTSE 100 index rose 0.6%. The blue-chip index notched its second straight week of losses on Friday.
The mid-cap FTSE 250 index gained 0.2%.
Oil traded higher after the U.S. vowed to keep attacking Yemen's Houthis until the Iran-aligned group ends its assaults on shipping. Chinese economic data also fuelled hopes for higher demand. [O/R]
Heavyweight Shell was among the biggest boosts to FTSE 100, up 1.6%.
Precious metal miners firmed 2.6% as safe-haven gold hovered near record levels after hitting the $3,000 an ounce-mark last week. [GOL/]
British insurer Phoenix Group jumped 10% after reporting a better-than-expected rise in full-year adjusted operating profit and total cash, helped by growth in its pensions and savings business.
Trainline gained 6.1%, boosting the midcap index, after FIL Limited disclosed a 10.19% stake in rail ticketing company, upping its stake from 5.4%.
Meanwhile, the U.S. Federal Reserve meeting, which concludes on Wednesday, will be parsed for clues on policymakers' thinking of further interest rate cuts in the world's largest economy. [.N]
Back home, the BoE is expected to keep rates steady on Thursday, while details on whether the central bank sticks to only gradual moves ahead will be key.
Further, the Organisation for Economic Cooperation and Development said that Britain's economy will grow more slowly than previously expected in 2025 and 2026 as global growth is hit by uncertainty, lowering its 2025 British growth forecast to 1.4% from 1.7%.
On the downside, QinetiQ slumped 21.5%, after the defence and security company warned of delays in short-term contracts being awarded in the U.S. and the UK, where new policies are being implemented after recent changes in government.
(Reporting by Medha Singh and Sanchayaita Roy in Bengaluru; Editing by Shilpi Majumdar and Toby Chopra)
