The FTSE 100 made steady gains on Monday as traders prepared for the Bank of England’s interest rate decision on Thursday and signals for future interest rate cuts.
London’s leading index edged 0.1% higher in midday trade on Monday.
“London stocks have a touch higher this morning as investors brace for a pivotal week at the Bank of England,” said Matt Britzman, senior equity analyst, Hargreaves Lansdown.
“Rates are widely expected to stay at 4% on Thursday, but the real debate is whether policymakers deliver a cut in December, with odds hovering near 50-50. With stubborn inflation and slowing growth, expectations for the year ahead are in the balance.”
The FTSE 100 had been higher earlier in the session after oil prices jumped on OPEC’s decision to tackle a supply glut by holding off increasing output.
“The FTSE 100 got off to a solid start with oil helping to grease the wheels of the index,” said AJ Bell investment director Russ Mould.
“The decision by producers’ cartel OPEC+ to pause further output hikes at the start of next year, amid concerns about a glut of supply, helped give oil prices a lift and, in turn, boosted UK market heavyweights BP and Shell.”
However, BP and Shell eased back as the session progressed, trading less than 1% higher. BP also announced the divestment of its US midstream business on Monday, with little effect on the share price.
Airtel Africa continued its ascent, gaining 4%, as the telecoms group extended a rally sparked by last week’s positive half-year report. Airtel Africa shares are 150% higher in 2025.
Games Workshop was another stock building on recent gains, rising 2% on Monday. The tabletop gaming company is nearing all-time highs after recovering from a correction that started in June this year.
Miners and Vodafone were among the losers with Vodafone the top faller on the day.
“Elsewhere in the mining sector, there was pressure on share prices on signs of slowing Chinese economic growth and weaker factory activity across Asia as US tariffs take their toll,” Russ Mould explained.
“Vodafone was the top faller on the FTSE 100 after investment bank UBS downgraded its recommendation on the stock to ‘sell’, citing several competitive risks.”