FTSE 100 experienced an uptick on Monday, driven by a surge in healthcare shares, amidst widespread gains. The benchmark FTSE 100 was up 0.6% at 09:36, while the domestically focused FTSE 250 rose 0.6%. Investors remained attentive to the looming possibility of a U.S. government shutdown, which could postpone crucial economic data releases. Healthcare stocks climbed 1%, with pharmaceutical giant GSK’s shares rising 2.3% following an announcement that CEO Emma Walmsley will step down in December and be replaced by company insider Luke Miels.

“It appears that investors are optimistic about the appointment of a new leader, one who possesses a comprehensive understanding of the business, as this could provide a renewed momentum to an organization that is currently positioned favorably,” stated Danni Hewson. Meanwhile, heavyweight AstraZeneca rose 1% after revealing plans to directly list on the New York Stock Exchange, though the company emphasized it will maintain its London listing and headquarters. Precious metal miners advanced 2.2% as gold prices continued to hit new records.

The recent surge in gold prices can be attributed to heightened anticipations of interest rate reductions in the U.S. and escalating worries regarding a possible government shutdown, thereby bolstering the appeal of safe-haven investments. President Donald Trump is set to engage with the leadership of both congressional Democratic and Republican parties later today to deliberate on the extension of government funding. In the absence of an agreement, a shutdown is set to begin on Wednesday, which could hinder the dissemination of critical economic indicators, notably the highly scrutinized September non-farm payrolls report scheduled for later this week.

On the domestic front, surveys published on Monday indicated that Britain’s labour market is exhibiting further signs of cooling, while businesses maintain a pessimistic outlook regarding their prospects in the upcoming months, underscoring persistent economic challenges. As we look forward, market participants will be paying particular attention to the forthcoming second-quarter GDP figures, scheduled for release on Tuesday, in order to gain a clearer understanding of the prevailing conditions within the UK economy.