London Equities experienced a 1% increase on Monday, reflecting a positive sentiment across global markets amid indications that a significant U.S. government shutdown may be approaching resolution. Additionally, Diageo saw a notable rise following the appointment of a former Tesco executive as its CEO. Diageo’s shares gained 7.2%, positioning the company for its most significant percentage increase in five years, following the appointment of Dave Lewis as CEO of the world’s largest spirits maker. “The stock is unloved after several years of disappointment, and the appointment of a highly respected CEO could be sufficient to win over many investors,” stated Dan Coatsworth. “However, Lewis is aware that he will ultimately be evaluated based on outcomes, not aspirations.” Diageo’s shares remain close to decade-lows, reflecting a decline of approximately 27% in value this year.

The blue-chip FTSE 100 added 1% by 1158, while the mid-cap FTSE 250 index climbed 1.1%. Global equities experienced an upswing following the advancement of a legislative proposal in the U.S. Senate aimed at reopening the federal government and concluding the shutdown. UK stocks experienced a weekly decline on Friday, following a selloff in prominent U.S. tech stocks that affected global markets, while the Bank of England maintained interest rates as anticipated. Nevertheless, a closely contested vote and indications that Governor Andrew Bailey may soon align with those advocating for a rate reduction have enhanced the likelihood of such a decision in December, following the presentation of the government’s budget.

Investors are poised to monitor the forthcoming third-quarter GDP data alongside additional corporate earnings reports this week. UK’s precious metal miners climbed 4.5%, while industrial metal miners increased by 1.9%, as gold reached a two-week high and copper prices rose. British Airways parent IAG gained 3.4%, having tumbled 11.6% on Friday after reporting weak U.S. demand. Shares of RHI Magnesita listed in London surged by 20% following the refractory products supplier’s announcement of strong profit margins and the reaffirmation of its full-year forecast.

Overall, optimism surrounding the potential resolution of the U.S. shutdown and the rebound in global risk appetite helped lift sentiment across the London market. With investors awaiting critical domestic economic data and earnings results, market watchers are now assessing whether the recent rally can be sustained, particularly amid speculation of a Bank of England rate cut in the coming months.