29th Sep 2025 12:12
(Alliance News) - Stock prices in London were higher at midday on Monday, shaking off the shadow of a possible US government shutdown, as the appointment of a new boss at GSK was well received by investors.
The FTSE 100 index was up 54.73 points, 0.6%, at 9,339.56. The FTSE 250 was up 145.49 points, 0.7%, at 21,826.97, and the AIM All-Share was up 4.16 points, 0.5%, at 781.69.
The Cboe UK 100 was 0.7% higher at 935.94, the Cboe UK 250 was up 0.8% at 19,110.01, and the Cboe Small Companies was 0.4% higher at 17,586.51.
In European equities on Monday, the CAC 40 in Paris and the DAX 40 in Frankfurt both edged 0.1% higher.
"The FTSE 100 was firmly higher on Monday after the market took reassurance from Friday's reading of US inflation," said AJ Bell analyst Russ Mould.
"The fact the PCE number – closely followed by the Federal Reserve when making interest rate decisions – came in bang in line with expectations helped create a positive mood on Wall Street which largely carried into trading in Asian markets overnight and, in turn, European shares this morning."
US lawmakers said on Sunday they were open to talks to avert a fast-approaching federal government shutdown after the Trump administration raised the stakes by threatening mass federal firings if there is no agreement.
If Congress fails to strike a funding deal, stocks could be put under pressure by the closure of government services on Wednesday.
Back in the UK, Rachel Reeves hinted at tax rises in the upcoming budget but insisted Labour's manifesto commitment "stands" on VAT rules as she unveiled plans to guarantee work for long-term unemployed youth, PA reported.
The UK chancellor said the "world has changed" since last year when she told business chiefs the government would not be coming back for "more taxes" after raising around GBP40 billion in November.
Speaking to broadcasters from Labour's annual conference, Reeves warned the UK was not "immune" to increased global borrowing and tougher trade barriers stemming from US tariffs.
During the media round, the chancellor said she was "determined not to increase those key taxes that working people pay" and said "the manifesto stands" when asked to rule out a hike in VAT in the Budget. Labour's election document promised not to increase the tax.
In economic data, UK mortgage approvals were in line with expectations last month, numbers from the Bank of England showed.
The central bank said mortgage approvals totalled 64,680 in August, down slightly from 65,161 in July, but fractionally ahead of the FXStreet cited consensus of 64,500.
The average interest rate on newly drawn mortgages fell for the sixth month in succession to 4.26% in August, from 4.28% in July.
Sterling was at USD1.3430 at midday on Monday in London, up from USD1.3399 at the London equities close on Friday. The euro traded at USD1.1719, up from USD1.1692 late Friday. Against the yen, the dollar was lower at JPY148.65 versus JPY149.51.
Stocks in New York were called higher. The Dow Jones Industrial Average was called to open up 0.4%, the S&P 500 index 0.6% higher, and the Nasdaq Composite up 0.7%.
The yield on the 10-year US Treasury narrowed to 4.14% from 4.18% on Friday. The yield on the 30-year slimmed to 4.72% from 4.75%.
In London, GSK gained 2.7% as it said Chief Executive Emma Walmsley will step down from the start of next year, with Chief Commercial Officer Luke Miels named as its next boss.
Walmsley, who has been CEO since April 2017, believes it is the "right moment for new leadership". Miels joined GSK in 2017 and is currently chief commercial officer.
He also has experience in "senior levels in the US, Europe and Asia" at AstraZeneca, Roche and Sanofi-Aventis, now known as Sanofi.
AJ Bell analyst Russ Mould said: "Using the ultimate arbiter, GSK has achieved a total return of around 30% since Walmsley took charge compared with more than 180% for AstraZeneca. In this context there may be some eyebrows raised at an internal appointment being selected to take over in the form of current chief commercial officer Luke Miels, particularly given his tenure largely matches his current boss."
Berkeley Group climbed 2.6% on Monday.
The housebuilder promoted Neil Eady to chief financial officer, effective from Monday.
Eady, who joined Berkeley in 2013, is currently divisional finance director of Berkeley Capital, one of the group's London divisions. Before joining Berkeley, Eady spent 10 years at property peer Land Securities.
BP shares fell 1.0% as it approved a new project in the Gulf of Mexico, which aims to produce 80,000 barrels of oil per day.
The London-based oil and gas company reported a positive final investment decision for the Tiber-Guadalupe project, of which it will be the sole owner and operator.
The company said an estimated USD5 billion investment in Tiber-Guadalupe is "fully accommodated within BP's disciplined financial framework."
Also in focus for BP and the rest of the sector was the news that Iraq has resumed crude exports from its Kurdistan region after a two-year halt.
The restart follows disputes with Baghdad that had shut a key pipeline to Turkey since 2023. Iraq's oil marketer SOMO confirmed exports of 190,000 barrels per day, with another 50,000 bpd for domestic use.
Gulf Keystone Petroleum shares were 2.7% higher.
CMC Markets made the largest gains on the FTSE 250 index and rose 6.4%.
The London-based trading platform said it has extended its long-term technology and platform partnership with Westpac Banking, one of Australia's largest banks.
The company said its CMC Markets Stockbroking arm has been selected as Westpac's preferred vendor, in relation to the bank's online share trading services, Westpac Share Trading and St George Directshares.
CMC will provide Westpac and St George share trading customers with access to branded web and mobile white label platforms, including integration with the bank's current technology offering.
In small caps, Capita gained 16% as Canaccord started coverage of the stock with a 'buy' rating and a 900p price target.
On the AIM market, Future Metals surged 18%.
The exploration company, focused on projects in Western Australia, said it has hired Keith Bowes as managing director and chief executive officer.
Bowes has over 30 years of experience in project development, metallurgy and operations across Africa, South America and Australia. He was previously managing director and technical director of Lotus Resources. "
"We are confident that his technical and executive expertise will be invaluable as we continue to advance our flagship Panton project and the emerging Eileen Bore project, particularly as he has a proven track record of adding significant value for shareholders in similar roles," said Non-Executive Chair Patrick Walta.
At the other end of the index, Trafalgar Property Group sank 24%.
The South-East England-focused residential property developer said it will not be able to publish its accounts for the year to the end of March by Tuesday's deadline.
Its shares will be suspended from trading on Wednesday morning.
Gold was higher at USD3,817.10 an ounce at midday on Monday from USD3.775.97 late Friday. Brent oil was trading lower at USD67.96 a barrel from USD70.64.
AJ Bell's Mould said: "Gold prices continue to mark new records, with expectations for further rate cuts from the Fed supportive given the precious metal does not offer income. Now above USD3,800, gold has also been boosted by central bank buying over several years, weaker demand for traditional safe havens like US government bonds driven by concerns over US deficits and trade policy, dollar weakness and geopolitical tensions, including conflicts in the Middle East and Ukraine.
"The threat of a shutdown in Washington, as policymakers engage in tense negotiations ahead of a deadline at midnight on Tuesday, is yet another factor driving support for gold."
Still to come on Monday's economic calendar are US pending home sales numbers, which are due in the afternoon.
By Michael Hennessey, Alliance News reporter
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