Miners and defense stocks lift FTSE Futures

FTSE Futures

FTSE Futures ended the day with a modest increase on Monday, helped by the performance of precious metal miners and defence stocks, although declines in utilities limited the overall gains. The blue-chip FTSE 100 closed 0.1% higher, following its biggest weekly decline in almost five months on Friday. The domestically focused mid-cap index rose 0.1%. Defence stocks advanced after Norway said it had chosen Britain as its strategic partner for the acquisition of new frigates, in a deal worth some 10 billion pounds.

The FTSE 100 reached a record high in August, driven by a surge in global shares amid increasing expectations for a U.S. rate cut in September. However, by the end of the month, it experienced four consecutive sessions of declines. Heavyweight banking stocks fell on Friday after a think-tank recommended a new tax on lenders as a possible way for finance minister Rachel Reeves to raise revenue. However, they rebounded slightly on the day, with several analysts suggesting that the sharp declines from last week were overdone.

  • BAE Systems rose 1.9%, Babcock advanced 2.1%, while Rolls-Royce gained 2.8%.
  • Precious metal mining stocks gained 3.3%, tracking higher gold prices.
  • Hochschild Mining rose 6.7%, while Fresnillo and Endeavour Mining added 2.1% and 3.5%, respectively.
  • NatWest opened new tab was up 1.2% and Barclays opened new tab rose 1.9%.
  • SSE down 3.1%.
  • National Grid and United Utilities fell 2.1% and 2.5%, respectively.

Personal goods and industrial mining stocks also declined. Among corporate updates, IT software developer Kainos opens new tab jumped 22.5%, to top the mid-cap index, on an upbeat annual outlook. Domino’s Pizza Group opens new tab rose 8.8% on reaffirming its annual earnings forecast and launching a new share buyback. A survey indicated that manufacturers in Britain faced a new challenge in August, as new orders declined amid concerns over international trade tensions and domestic tax hikes.

In a recent development, a U.S. appeals court determined on Friday that the majority of U.S. President Donald Trump’s tariffs are unlawful. However, the court has decided to keep them in effect until mid-October to allow for additional appeals. So Jane, U.S. job growth through to March is anticipated to be revised down significantly. Trump has pledged to escalate the case to the Supreme Court, while trade experts indicate that the administration is formulating backup strategies to move forward with its tariffs.