UK’s FTSE 100 closes near one-week high, Melrose shines

(Reuters) -UK’s FTSE 100 closed higher on Monday, with conglomerate Melrose topping the index following an upbeat trading update, while domestically-focussed midcaps closed lower as caution prevailed ahead of an inflation report due later in the week.

The export-heavy FTSE 100 index rose 0.57% to a near one-week high, buttressed by a 3.2% jump in precious metal miners as bullion prices rebounded. [GOL/]

Melrose Industries rose 7.6% to levels last seen more than three months ago, after the owner of aerospace parts maker GKN Aerospace reported a jump in revenue over the past four months and said it expects to deliver a surge in free cash flow in 2025.

“Historically, Melrose bought up industrial businesses and executed a buy, improve, sell model – investors will hope the ‘improve’ bit has been retained,” Russ Mould, investment director at AJ Bell, said.

The midcap FTSE 250 that includes more domestically exposed companies lost 0.4%, ahead of October inflation data expected on Wednesday.

A majority of market participants, as per data compiled by LSEG, have priced in that the Bank of England could leave interest rates unchanged at its last meeting for the year in December, despite signs of an economy in contraction.

The main indexes logged losses in the previous week, with the FTSE 100 clocking its fourth straight week in declines.

Cerillion added 1.3% after the billing, charging and customer relationship management software provider reported strong annual results.

IQE pared early losses and was last down 1.7% after the Apple supplier said it would start a strategic review of its assets and warned that revenue would not grow this year due to a slower-than-expected recovery and weak consumer demand in end markets.

Sectors that were among top decliners were construction and materials along with real estate <.FTUB3510>, down over 1.4% each. A report from online property portal Rightmove said asking prices for homes fell over the last month by more than is usual for the time of year.

Also on tap this week are October retail sales figures and November business activity data.

(Reporting by Johann M Cherian in Bengaluru; Editing by Shinjini Ganguli and Andrew Heavens)