LONDON (ShareCast) - (Sharecast News) - London markets closed higher on Monday as investors reacted positively to geopolitical developments, including US president-elect Donald Trump's announcement of Scott Bessent as the next Treasury Secretary.

The FTSE 100 index rose 0.36% to end the session at 8,291.68 points, as the FTSE 250 outperformed, climbing 0.81% to 20,749.26 points.

In currency markets, sterling was last up 0.17% on the dollar, trading at $1.2551, while it slipped 0.48% against the euro, changing hands at €1.1974.

"November saw the Dow breach 44,000 for the first time, and there is a very real possibility that the index will surpass 45,000 in the same month," said IG chief market analyst Chris Beauchamp.

"Stocks received a boost on Friday on news that Trump had chosen Scott Bessent for the US Treasury, a reassuring sign for investors.

"Thanksgiving week is generally positive for US markets anyway, but they have an extra spring in their step as the holiday approaches."

Beauchamp added that reports of a possible ceasefire in Lebanon had bolstered risk appetite too, although it had done little for oil and gold, both of which he said seemed poised for more losses.

"The past two weeks have helped repair a lot of the damage in the FTSE 100, which has continued its recovery from the 8000 low.

"Unlike US indices, the FTSE 100 is still some way off a new high, but with yields around the globe softening the index has recouped some of its lustre.

"So far the market isn't reading too much consumer weakness into the Kingfisher figures, preferring to hope for general Christmas splurge."

German business confidence deteriorates further

Monday brought little domestic economic news in the UK, with the absence of major data releases leaving markets to focus on developments abroad.

On the continent, German business confidence deteriorated further, underscoring continued challenges in Europe's largest economy.

The IFO Institute's business climate index, a closely watched barometer of sentiment among 9,000 private-sector firms, fell to 85.7 in November from 86.5 in October, missing forecasts of 86.0.

That marked a reversal of October's brief recovery from September's low of 85.4, the weakest reading in over four years.

Sentiment worsened across key sectors, with the current assessment sub-index dropping to 84.3 from 85.7 and expectations edging down to 87.2 from 87.3.

Manufacturers expressed skepticism about future demand as new orders declined, describing current conditions as "difficult", according to the IFO.

The services sector reported a "significantly worse" environment, with pessimism mounting for the months ahead.

Declines were also evident in trade and construction, pointing to broader economic weakness.

According to Alexander Valentin, senior economist at Oxford Economics, the drop in sentiment overall mirrored the trend seen in other indicators which weakened following the US elections earlier this month.

"The fall in the current component was driven by services and construction while expectations worsened mainly in manufacturing, likely due to the anticipation of US tariffs and challenges to global trade flows," Valentin said.

ITV soars on takeover rumours, Kingfisher falls after guidance cut

On London's equity markets, Rentokil Initial climbed 1.9% after announcing the appointment of Paul Edgecliffe-Johnson as chief financial officer, effective January 2025.

He would replace Stuart Ingall-Tombs, who was retiring after 17 years with the company, including four as CFO.

Anglo American advanced 1.36% following news of a $3.77bn cash deal to sell its steelmaking coal mines in Australia to Peabody Energy.

The move aligned with the company's strategic shift toward copper, premium iron ore, and crop nutrients.

ITV soared 10% amid reports of renewed interest from potential suitors looking to acquire parts or all of the broadcaster.

Speculation over its long-term strategic direction has reignited following a period of share price weakness, according to Sky News.

Barclays rose 2.59% despite being fined £40m by the Financial Conduct Authority over alleged secret payments to Qatar during the 2008 financial crisis.

Weir Group gained 1.93% after an upgrade to 'buy' from Deutsche Bank, boosting investor sentiment.

JD Sports Fashion rallied 7.05%, recovering from last week's sharp losses driven by a warning of full-year profits at the lower end of forecasts.

On the downside, Kingfisher fell 1.43% after the home improvement retailer slightly lowered its full-year profit guidance.

Third-quarter sales for the B&Q and Screwfix parent dipped 0.6%, with adjusted pre-tax profit now expected to range between £510m and £540m, compared to its previous upper estimate of £550m.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,291.68 0.36%
FTSE 250 (MCX) 20,749.26 0.81%
techMARK (TASX) 4,710.37 -0.02%

FTSE 100 - Risers

JD Sports Fashion (JD.) 102.80p 9.99%
Entain (ENT) 796.80p 5.56%
easyJet (EZJ) 538.40p 4.22%
Barratt Redrow (BTRW) 428.90p 3.70%
Prudential (PRU) 656.80p 3.43%
International Consolidated Airlines Group SA (CDI) (IAG) 253.60p 3.09%
Vistry Group (VTY) 659.50p 2.57%
3i Group (III) 3,660.00p 2.55%
Halma (HLMA) 2,762.00p 2.52%
Barclays (BARC) 263.65p 2.51%

FTSE 100 - Fallers

Kingfisher (KGF) 255.80p -13.26%
Fresnillo (FRES) 633.00p -2.99%
BAE Systems (BA.) 1,297.50p -2.70%
BP (BP.) 387.85p -1.24%
Shell (SHEL) 2,574.00p -1.11%
Smurfit Westrock (DI) (SWR) 4,486.00p -0.99%
Severn Trent (SVT) 2,750.00p -0.90%
Haleon (HLN) 377.00p -0.87%
Schroders (SDR) 313.20p -0.57%
Relx plc (REL) 3,702.00p -0.56%

FTSE 250 - Risers

ITV (ITV) 71.15p 8.63%
Close Brothers Group (CBG) 215.80p 7.68%
Ocado Group (OCDO) 329.30p 7.58%
Wood Group (John) (WG.) 57.80p 7.04%
Aston Martin Lagonda Global Holdings (AML) 112.40p 6.34%
Dr. Martens (DOCS) 59.95p 6.29%
XPS Pensions Group (XPS) 372.00p 5.08%
Wizz Air Holdings (WIZZ) 1,362.00p 5.01%
Just Group (JUST) 147.60p 4.53%
CMC Markets (CMCX) 274.00p 3.79%

FTSE 250 - Fallers

Hochschild Mining (HOC) 212.50p -5.13%
Alpha Group International (ALPH) 2,275.00p -2.63%
Games Workshop Group (GAW) 13,400.00p -2.40%
Foresight Environmental Infrastructure Limited (FGEN) 74.00p -2.37%
Investec (INVP) 580.00p -2.27%
Genus (GNS) 1,680.00p -2.21%
Hilton Food Group (HFG) 902.00p -1.96%
Clarkson (CKN) 3,865.00p -1.78%
QinetiQ Group (QQ.) 423.20p -1.76%
Dunelm Group (DNLM) 1,137.00p -1.47%

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