London open: FTSE gains as focus shifts to US; GSK, AstraZeneca in the black
By Michele Maatouk
Date: Monday 29 Sep 2025
(Sharecast News) - London stocks rose in early trade on Monday as the focus turned to the US to see if a government shutdown can be avoided and to Friday's all-important non-farm payrolls report.
At 0830 BST, the FTSE 100 was 0.3% higher at 9,309.15.
Richard Hunter, head of markets at Interactive Investor, said: "US markets ended the week on a cautiously positive note, but the outlook is cloudy and the next few days are likely to provide further tests of investor optimism.
"The possibility of a government shutdown this week is a complication which investors could do without. Quite apart from any disruption, there could be an impact on jobs and in addition, such an outcome would delay Friday's release of the non-farm payrolls report, which to some extent would leave the Fed flying on one engine.
"Even so, the NFP report - should it happen - is expected to show that around 40,000 jobs were added in September, compared to 22,000 the previous month, with unemployment staying unchanged at 4.3%. Such a weak reading for the second consecutive month would be indicative of the Fed's current dilemma.
"On the one hand, the economy is still not in need of obvious support, as evidenced by last week's readings such as strong ongoing GDP growth. By the same token, a weakening labour market is offset by inflation levels which are still north of the Fed target."
Hunter said that in any event, the market is pricing in another cut in October and one more before the year is out. "By definition, this leaves any decision open to disappointment and with valuations at stretched levels, and with the third quarter reporting season imminent, markets could be vulnerable," he said.
Hunter said the UK also remains "economically prone" to disappointment this week, with the release of GDP numbers following comments expected later from the Chancellor at the Labour Party conference ahead of the November Budget.
"The speech is unlikely to give any specific clues as to how the government may attempt to balance its books, but the inevitability of further tax rises has weighed on recent sentiment, with any strength in sterling, for example, being the result of US dollar pressure rather than optimism on UK economic prospects," he said.
On the UK macro front, consumer credit, mortgage approvals and net lending figures for August are due at 0930 BST.
Investors were also mulling the latest survey from the Confederation of British Industry, which showed that business confidence remained low in September as companies forecast further falls in activity during the coming quarter.
In equity markets, GSK jumped to the top of the FTSE 100 as it announced that chief executive Emma Walmsley is to leave the company after nearly a decade in the role. She will be replaced by the biopharma's chief commercial officer Luke Miels.
Richard Hunter said the announcement removes "some recent management uncertainty surrounding the stock, leaving the shares 13% higher this year despite the overarching concerns around pricing in the pharma sector as a whole".
AstraZeneca was also trading up after saying it plans to list its shares directly on the New York Stock Exchange, rather than the current depository shares, and that it will remain listed and headquartered in London.
Berkeley Group advanced as the housebuilder announced the promotion of a divisional finance director to its chief financial officer position. Neil Eady, who has been with the company for 12 years and currently leads the finance function of Berkeley Capital, has been appointed to the board with immediate effect.
Pets at Home ticked higher as it said chief financial officer Mike Iddon was retiring after nine years in the job and would be replaced by Sarah Pollard, who joins from consumer goods group PZ Cussons.
Insurer Admiral rallied after a double upgrade to 'buy' at Jefferies.
Precious metals miner Fresnillo and gold miner Hochschild Mining also gained as gold prices hit a new high.
On the downside, Rentokil fell as Berenberg started coverage of the stock at 'sell'. "We recognise the potential for market-level growth in the long term, but think it is too early for investors to count on an upswing, due to challenges relating to the integration of Terminix," it said.
Market Movers
FTSE 100 (UKX) 9,309.15 0.26%
FTSE 250 (MCX) 21,739.11 0.27%
techMARK (TASX) 5,417.38 0.61%
FTSE 100 - Risers
GSK (GSK) 1,533.00p 3.16%
Fresnillo (FRES) 2,376.00p 2.41%
Antofagasta (ANTO) 2,727.00p 2.29%
Admiral Group (ADM) 3,258.00p 1.88%
BAE Systems (BA.) 2,036.00p 1.19%
AstraZeneca (AZN) 11,130.00p 1.18%
Convatec Group (CTEC) 227.60p 1.07%
Anglo American (AAL) 2,723.00p 1.04%
Babcock International Group (BAB) 1,286.00p 1.02%
Hikma Pharmaceuticals (HIK) 1,660.00p 0.97%
FTSE 100 - Fallers
Rentokil Initial (RTO) 363.70p -1.57%
BP (BP.) 441.35p -0.93%
Burberry Group (BRBY) 1,140.00p -0.74%
Unilever (ULVR) 4,381.00p -0.70%
Associated British Foods (ABF) 2,006.00p -0.64%
Vodafone Group (VOD) 85.28p -0.56%
3i Group (III) 4,005.00p -0.42%
Next (NXT) 12,140.00p -0.41%
Shell (SHEL) 2,725.50p -0.29%
Marks & Spencer Group (MKS) 355.90p -0.28%
FTSE 250 - Risers
Hochschild Mining (HOC) 365.60p 3.92%
Frasers Group (FRAS) 740.50p 2.92%
Coats Group (COA) 83.80p 2.07%
Diversified Energy Company (DEC) 1,092.00p 1.96%
W.A.G Payment Solutions (EWG) 99.00p 1.85%
Moonpig Group (MOON) 225.50p 1.81%
RHI Magnesita N.V. (DI) (RHIM) 2,050.00p 1.74%
Telecom Plus (TEP) 1,884.00p 1.73%
Spirent Communications (SPT) 198.40p 1.64%
Energean (ENOG) 832.00p 1.59%
FTSE 250 - Fallers
Zigup (ZIG) 307.50p -2.69%
Kier Group (KIE) 208.50p -2.57%
Genus (GNS) 2,245.00p -1.97%
Target Healthcare Reit Ltd (THRL) 93.40p -1.68%
Safestore Holdings (SAFE) 645.00p -1.45%
Playtech (PTEC) 368.50p -0.94%
Hilton Food Group (HFG) 650.00p -0.76%
Renishaw (RSW) 3,490.00p -0.71%
GCP Infrastructure Investments Ltd (GCP) 71.00p -0.70%
Lion Finance Group (BGEO) 7,395.00p -0.54%
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