The FTSE 100 carved out gains on Monday as investors digested a wide range of macro developments and company updates.
London’s leading index was 0.15% higher at the time of writing as mining stocks gained and Phoenix Group soared to the top of the leaderboard.
Positive news from China helped support the index as miners reacted to China’s stimulus developments and a ‘special action plan’ to boost consumer spending.
However, gains were capped as investors braced for a busy week of central bank action and economic data. The first major data point of the week, US retail sales, was a disappointment, with growth of just 0.25% compared to estimates of 0.6%.
“Markets are in choppy waters at the start of a week dominated by central bank decisions, as investors navigate risky trade currents and geopolitical uncertainty,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
“Hopes that a new consumer life raft in China will buoy up the country’s prospects of recovery have helped lift sentiment slightly, but caution remains.”
The Federal Reserve will kick off its interest rate meeting tomorrow and release its decision on Wednesday. The Fed is expected to keep rates on hold, but its forecasts of economic activity will be scrutinized for insights into its thinking on Donald Trump’s tariffs.
Phoenix Group
Phoenix Group soared to the top of the FTSE 100 leaderboard on the news strength in the group’s Pensions and Savings and Retirement Solutions businesses meant it would achieve financial goals sooner than previously thought.
“We are ahead of plan from both a strategic and financial perspective, delivering Operating Cash Generation of £1.4bn two years ahead of our 2026 target,” said Phoenix Group CEO, Andy Briggs.
Phoenix Group shares were 9% higher at the time of writing.
Miners Antofagasta and Rio Tinto were also among the risers on China stimulus hopes. JD Sports rose 2% as bargain hunters stepped in to pick up the beaten down retailer.
AstraZeneca weighed on the index after announcing the $1 billion acquisition of EsoBiotec, a Belgium-based cell therapy company.
“Pharmaceutical companies face a continual pressure to move on to the next major treatment or medical breakthrough as they spy the end of patent protection on their existing drugs,” said
“That explains why AstraZeneca has doled out $1 billion to buy Belgian firm EsoBiotec which has made some clinical advancements in cell therapy. It empowers immune cells within a patient’s body to fight off disease.
“This still represents a relatively small bet for a company of AstraZeneca’s size – it is paying out an initial $425 million with the remainder based on hitting certain milestones, having posted revenue of more than $54 billion in 2024.”