UK’s main stock index was largely flat in thin trade on Monday, with investors awaiting a slew of domestic data and across major economies, such as the US and Europe, to position for a month dominated by central bank policy decisions.
The blue-chip FTSE 100 index was unchanged as of 1910 GMT, after hitting a three-month high on Friday and logging its third straight weekly rise.
Meanwhile, the domestically-focused mid-cap FTSE 250 slipped 0.1%, having logged its steepest monthly decline in August since October last year. Trading volumes are expected to be light throughout the day due to holidays in the United States and Canada.
US employment data, including the payrolls report for August, could help determine the quantum of an all-but-certain September interest rate cut by the Federal Reserve.
Back home, the Purchasing Managers’ Index (PMI) and housing data is due this week, while producer prices and retail sales are some of the key data on investors’ Europe watch list.
FTSE 100 hits 3-month high amid rate-cut hopes
The Fed, European Central Bank and Bank of England are set to announce their policy decisions later this month, with the BoE seen as the only one holding rates, as per LSEG data.
Among major stocks, Rightmove jumped 25% to its highest level since March 2022, helping the real-estate index climb nearly 2%, as REA Group said it was considering an offer for Britain’s largest property portal.
Homebuilders Barratt and Bellway were up 3% and 1%, respectively, boosting the household goods index.
Data from Nationwide Building Society showed British housing prices unexpectedly fell in August, but the outlook for the property market is likely to strengthen. On the flip side, industrial metal miners dropped nearly 2%, owing to weakness across most base metals.
Rio Tinto was the worst-hit stock on the FTSE 100. Kingfisher slipped 1% after Barclays downgraded the home improvement retailer’s stock to “equal-weight” from “overweight”.
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