London close: Stocks jump to one-month high on rate cut hopes
By Benjamin Chiou
Date: Monday 15 Dec 2025
(Sharecast News) - UK stocks surged to a one-month high on Monday, helped by strong gains in the airline, mining and financial sectors, as sentiment continues to be lifted by hopes of an interest rate cut by the Bank of England later this week.
Despite a weak start on Wall Street, with all three benchmark indices in the red early on, UK stocks rallied in afternoon trade, pushing the FTSE 100 up 1.2% at 9,767.79 - it's highest finish since 13 November.
According to Matt Britzman, senior equity analyst at Hargreaves Lansdown, markets are pricing in around a 90% chance of a rate cut by the BoE on Thursday. "UK markets have a clear focal point this week, with the Bank of England in the spotlight and a rate cut on Thursday widely seen as a done deal," Britzman said.
Meanwhile, David Morrison, senior market analyst at Trade Nation, said: "Given the truly pathetic economic growth this year, most analysts believe that MPC officials will point at recent data to claim that inflation has topped, giving them the excuse to ease up monetary policy. Let's hope so."
Central bank policy announcements are also due on Thursday from the European Central Bank, Riksbank and Norges Bank.
Back on home shores, investors were mulling a long-running survey which showed that consumer sentiment has softened in the wake of this year's Budget. The latest S&P Global consumer index came in at 44.7, down from 45.2 in November and the lowest print since April.
The latest house price reviews and outlooks from Nationwide and Halifax were also out, with the former expecting house prices to grow between 2% and 4% next year and the latter expecting a more modest 1% to 3% increase.
Airlines, financials, miners provide a lift
Airline stocks were performing well as oil prices slumped, with Brent crude down 1.5% at $60.18 a barrel - nearing lows not seen since early 2021 - amid escalating tensions between the US and Venezuela. Airtel Africa and IAG were both rising strongly.
Financial stocks were in demand on the blue chip index, with Prudential, NatWest, Hiscox, Aviva and Phoenix all among the top ten performners.
Decent gains from commodity giants Antofagasta, Glencore and Anglo American were also providing a lift on the FTSE 100, though precious metals miner Fresnillo was bucking the trend as the stock retreated after a near-25% surge over the past month.
Pharma group Haleon rose after positive comments from Morgan Stanley, named the stock as a top pick, while peer Hikma fell after the resignation of its chief executive.
On the FTSE 250, Mike Ashley's Frasers Group surged after announcing a share buyback programme of up to £70m, while Associated British Foods slumped after Jefferies downgraded the stock to 'underperform'.
Market Movers
FTSE 100 (UKX) 9,767.79 1.23%
FTSE 250 (MCX) 22,067.05 0.87%
techMARK (TASX) 5,584.21 0.57%
FTSE 100 - Risers
Antofagasta (ANTO) 3,047.00p 3.92%
Airtel Africa (AAF) 318.20p 3.65%
Prudential (PRU) 1,111.00p 3.59%
Burberry Group (BRBY) 1,312.50p 3.14%
Auto Trader Group (AUTO) 620.80p 3.12%
Hiscox Limited (DI) (HSX) 1,391.00p 3.11%
Haleon (HLN) 369.50p 3.07%
NATWEST GROUP (NWG) 630.40p 3.01%
International Consolidated Airlines Group SA (CDI) (IAG) 415.70p 2.97%
Phoenix Group Holdings (PHNX) 695.50p 2.81%
FTSE 100 - Fallers
Smurfit Westrock (DI) (SWR) 2,783.00p -1.83%
Fresnillo (FRES) 2,852.00p -1.79%
Flutter Entertainment (DI) (FLTR) 16,420.00p -1.65%
Rightmove (RMV) 529.80p -0.75%
Hikma Pharmaceuticals (HIK) 1,506.00p -0.66%
Smith & Nephew (SN.) 1,208.00p -0.62%
BAE Systems (BA.) 1,696.00p -0.26%
BP (BP.) 438.40p -0.19%
Tesco (TSCO) 440.10p -0.16%
Reckitt Benckiser Group (RKT) 5,992.00p -0.13%
FTSE 250 - Risers
Frasers Group (FRAS) 679.50p 7.94%
Foresight Solar Fund Limited (FSFL) 64.90p 4.01%
Wizz Air Holdings (WIZZ) 1,240.00p 3.85%
B&M European Value Retail S.A. (DI) (BME) 162.35p 3.51%
Ocado Group (OCDO) 233.40p 3.50%
Bodycote (BOY) 708.50p 3.43%
Kier Group (KIE) 221.50p 3.26%
Mony Group (MONY) 188.50p 2.95%
4Imprint Group (FOUR) 3,855.00p 2.94%
Morgan Sindall Group (MGNS) 4,755.00p 2.92%
FTSE 250 - Fallers
Oxford Biomedica (OXB) 599.00p -4.31%
Diversified Energy Company (DI) (DEC) 1,040.00p -4.15%
Rank Group (RNK) 106.00p -2.39%
Ceres Power Holdings (CWR) 267.20p -1.91%
Spire Healthcare Group (SPI) 165.80p -1.66%
ICG Enterprise Trust (ICGT) 1,502.00p -1.44%
Future (FUTR) 525.50p -1.41%
Playtech (PTEC) 288.00p -1.37%
Great Portland Estates (GPE) 301.00p -1.31%
Bluefield Solar Income Fund Limited (BSIF) 66.10p -1.20%
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