- FTSE 100 rises 102 points to 9,751
- Retail sector stocks in demand around Europe
- Big macro data and BoE awaited later in week
4.57pm: London stocks gain
The FTSE 100 added more than 102 points at 9,751, but it was a different story across the Atlantic, with all three major indexes in the red.
“The morning’s positivity has drained away as Friday’s selling carries over into the Monday session in the US,” IG chief market analyst Chris Beauchamp said.
“At this point, the temptation for many investors to book profits after such a strong recovery since April must be overwhelming, especially with plenty of macro events on the calendar for the week. That said, we are still about 36 hours from the traditional pre-Christmas liftoff for stocks, so it might not be entirely wise to check out too soon.”
4.14pm: FTSE off to a flier
The FTSE 100 is looking like starting the week with a very impressive gain of over 100 points.
Copper miner Antofagasta, Prudential, Burberry are among the top risers, boosted by signs of support from Beijing for China's economy.
Only 10 London blue chips are in the red, led by precious metals miner Fresnillo. The others are Metlen Energy, Rightmove, Hikma, Smith & Nehpew, BAE Systems, Tesco, Diageo, Reckitt and BP.
Meanwhile, across the pond, Wall Street is becalmed. The three main indices are all pretty much flat.
2.55pm: US stocks mixed
Inconclusive so far, is the picture of the opening trading on Wall Street, with the Dow Jones and S&P 500 just above flat, while the Nasdaq is just below.
All three opened higher, before quickly dropping, with the Nasdaq looking like it's heading further into the red.
Broadcom and Apple are weighing, down 2.4% and 1.3%, while Nvidia and Tesla are providing some support, up 1.2% and 4.2%.
2pm: Wall Street rebound anticipated
US stocks are expected to start the week on the front foot, rebounding after tech stocks drove selling at the end of last week.
S&P 500 futures were up 0.5%, with Dow Jones predicted to open up 0.4% and the Nasdaq 0.6% higher.
The previous session saw stock markets limp into the weekend, with the Nasdaq falling 1.7% to 23,195, the Russell 2000 shedding 1.5% to 2,551, the S&P dropping 1.1% to 6,827 and the Dow slipping 0.5% to finish at 48,458.
Elsewhere, shares in iRobot are down 72% in premarket trading after the firm behind the Roomba vacuum cleaner filed for Chapter 11 bankruptcy protection.
1.24pm: Another BoE preview
The US Fed "increasingly resembles [the BoE] with every meeting that passes", says UBS economist Dean Turner, following last week’s widely anticipated interest rate cut with a three-way split decision.
"Attention this week turns to monetary policy on this side of the Atlantic," he says with Thursday a busy day for him, with decisions from both the European Central Bank (ECB) and the Bank of England (BoE) to grapple with.
Only one of these is likely to make a change to interest rates, he says, saying the BoE is looking set to cut its base rate to 3.75%, while the ECB keeps its deposit rate steady at 2%.
Turner is one of many who sees a 5-4 decision with Governor Bailey holding the key vote for the second meeting running, tilting from a hold to a cut.
"One very good reason to hold off from easing last month was the impending budget. In the end, the fiscal plans (buy now, pay later) should have a minimal impact on economic growth.
"The chancellor’s efforts to 'cut living costs' via tweaks to energy bills could shave 0.4-0.5% off inflation next year, as the BoE has already acknowledged, and this is worth some attention.
"However, this is likely to prove temporary, with the effects fading out the following year, which is where policymakers are focused."
Last week’s GDP release for October illustrates "a more pressing issue" of a fourth consecutive month of an economy that is "moving sideways", in large part due to three months of uncertainty and speculation pre-Budget.
As for what's further ahead, Turner says the BoE's "gradual and cautious" adage is now familiar, "and we should expect more of the same in 2026, with only a couple more cuts to come at a gradual quarterly pace."
12.55pm: Luxury debates
Luxury stocks, including Burberry in London and Kering in Paris, are among the top risers today.
UBS says, after a trip to the US, that the outlook for the American consumer (which on average represents around 25% of sales for the publicly listed players and around 30% of growth since 2015) "continues to be an important growth driver for the sector going forward amid uncertainty related to China's long-term economic prospects".
US teams from various luxury brands, mall operators, retailers, confirmed "so far no change to the ongoing strong trends in the US market, especially at the high end of the market.
"However, it also revealed an increasing level of concern about the continuation of this multi-year luxury boom for much longer, given the past cycles.
"All in all, the trip confirmed our expectation for the US consumer to be the leading driver of the luxury market in 2026," UBS said, with an estimated 7% sales growth at constant currenncy rates versus the wider sector average of 5%.
Elsewhere, Berenberg is not buying the “luxury is back” narrative.
The next cycle may arrive, but expect 3-4% growth, not the 6-7% of old, analysts there reckon.
"There remains broad support and limited pushback on our core view that growth in the next cycle will be more modest versus history, driven primarily by weak Chinese growth. The weakness of Gen Z consumption was a surprise, and concern, to many."
Hermès is a top pick, Kering is a 'sell', and Richemont and LVMH are both 'hold'.
"We remain long absolute luxury, short aspirational."
12pm: IAG and retailers lead way
The gains keep coming for the FTSE, as it climbs back towards the all-time highs seen last month.
International Consolidated Airlines Group SA (LSE:IAG) is not top of the London risers, followed by Burberry, Antofagasta and Prudential.
Top of the FTSE 250 mid-caps are retailers Frasers Group PLC (LSE:FRAS), up 8%, and B&M European Value Retail SA (LSE:BME), up 5.1%.
11.35am: Broad gains
A wide breadth of stocks are gaining as European equities make a strong start to the week, says Josh Mahony at Scope Markets, who says this is the last major week of macro data for 2025.
"Despite the fact that we have such an incredibly busy week up ahead, traders are taking a largely positive tone, with the Fed’s rate cut meaning that the jobs report and inflation data will have less of an immediate impact on monetary policy.
"Meanwhile, the elevated levels of market confidence around both the Bank of England’s rate cut (91%) and the BoJ’s hike (82%), does alleviate much of the risk that we see any major unexpected hurdles for traders to navigate."
Elsewhere, he says defence stocks are down as Ukraine apparently drops their NATO aspirations, relying instead on security guarantees from the US and Europe in a bid to further heighten the chance of an end to the war.
"While on the face of it this would lessen the geopolitical risk in Europe, Trump’s strategy document shows a shift that leaves their historical allies in Asia and Europe more isolated and at risk in the years ahead."
He says the pessimistic tone in Asian markets is because traders are reacting to "a raft of Chinese data that saw underperformance across the trio of fixed asset investment, retail sales, and industrial production".
Chinese factory output growth slowed to a 15-month low, and retail sales the worst metric since the Chinese ended its zero-covid restrictions, so Mahony says there is "a clear need for the government to step in to lift economic prospects" though while President Xi Jinping has warned against "reckless decision-making in the pursuit of growth, those hoping for a silver bullet may be left waiting".
10.14am: Mining, media and fashion sector taking the lead
The FTSE 100 and some other European benchmarks are off to a flier at the start of the week, after a string of pretty sideways sessions last week.
London's blue-chip index is up 0.9%, similar for the Paris, Madrid and Milan benchmarks, while the German DAX is up 0.3% due to being held back by a 2.75% fall for defence giant Rheinmetall.
Likewise in the Square Mile, BAE Systems PLC (LSE:BA.) and Babcock International PLC (LSE:BAB) are a drag.
Topping the Footsie leaderboard now is copper miner Antofagasta PLC (LSE:ANTO), up 2.9%, followed by media sector names Auto Trader Group PLC (LSE:AUTO) and RELX PLC (LSE:REL).
Burberry Group PLC (LSE:BRBY) is up 2.5%, with other European fashion houses also well bid, with Kering, Hermes and LVMH leading the way in Paris.
9.50am: Strong start
While Asia sells off, catching up with Wall Street, the FTSE 100's miners are being lifted, despite weak Chinese data, says Russ Mould at AJ Bell.
"The sickly industrial production and retail figures strengthen the argument for new stimulus efforts from the government in Beijing."
He says the FTSE's relative lack of exposure to AI in the UK is "proving more of a boon of late amid increased nervousness about valuations in the space", with the US payrolls, retail and inflation readings this week to be "closely watched given the uncertainty around the trajectory of rates in 2026".
Hikma Pharmaceuticals is flagged as CEO Riad Mishlawi heads for the exit.
"The shares have lost more than a quarter of their value in 2025. The most damaging part of last month’s trading statement was the reduction in medium-term profit growth expectations – which forced a broader reassessment of the investment case than a mere blip in trading would have done," Mould says.
Former boss Said Darwazah is returning, having been serving as executive chair.
Next is also highlighted, with reports suggest it is interested in buying shoe retailer Russell & Bromley, or taking a stake in it.
This follows acquisitions in clothing, lingerie and furniture brands, as Next joins Sports Direct-owner Frasers as a new go-to name in the retail sector when a business needed bailing out.
8.54am: House prices to grow 2-4% next year
Nationwide expects UK house price growth of between 2% and 4% in 2026, as the lender expects housing market activity to improve as income growth outpaces house price growth.
This follows what the building society described as a “resilient” 2025, where house prices remained close to their all-time highs despite subdued consumer sentiment and elevated interest rates.
With the Bank of England expected to cut rates today, Nationwide sees a modest further decline in mortgage rates over the coming year.
Tax changes announced in the Budget are not expected to materially affect market dynamics in 2026, though buy-to-let activity may weaken, potentially limiting rental supply and contributing to upward pressure on rents.
“Looking ahead, we expect housing market activity to strengthen a little further as affordability improves gradually (as it has been in recent quarters) via income growth outpacing house price growth and a further modest decline in interest rates. We expect annual house price growth to remain broadly in the 2 to 4% range next year,” said Robert Gardner, Nationwide's chief economist.
8.38am: TT's potential rival bidder walks away
TT Electronics PLC (LSE:TTG) shares are down 17% after DBay Advisors said it is no longer considering making an offer.
Last week the Isle of Man investor said it was considering a possible offer and was given a put-up-or-shut-up deadline of 5pm today.
TT's board has recommended a rival offer from Swiss group Cicor Technologies, which includes options for investors to take 150p in cash or a cash-and-shares combination.
DBay, which has a stake of around 16.5%, said last week and repeated today that it "continues to believe that the terms of Cicor's offer...are unattractive, and therefore intends to vote against the scheme of arrangement".
8.15am: FTSE opens higher
The FTSE 100 has opened up 44 points at 9,693, with precious metals miners and retailers in the lead.
Top of the early risers is Endeavour Mining PLC (LSE:EDV), up 3.3%, followed by Burberry Group PLC (LSE:BRBY) and Fresnillo PLC (LSE:FRES).
Fallers are led by St James's Place, AB Foods and Tesco.
7.45am: What to watch for markets
Today is expected to be somewhat quiet on the macroeconomic front, but here's what to look out for on the markets this week, says analyst August Hyldgaard at Danske Bank.
"The rest of the week will offer many interesting figures ahead of key central bank meetings on Thursday."
Before then, tomorrow will see the UK jobs report and flash PMIs for various major economies, followed by UK and eurozone inflation prints on Wednesday.
Across the Atlantic, the delayed US nonfarm payrolls and full November jobs report are also set for release on Tuesday, along with retail sales data and on Thursday, the US CPI is due for release in the afternoon.
"All eyes will be on the Thursday central bank meetings from the ECB, Riksbank, Norges Bank and Bank of England (BoE)."
While the BoE is expected to cut rates, the market consensus expects the ECB and Scandinavian central banks to leave the deposit rate unchanged.
"Rounding off the week, the Bank of Japan (BoJ) will hold its meeting. Markets have increasingly expected the BoJ to hike the interest rate in recent weeks as Governor Ueda said he will 'consider pros and cons'."
7.16am: FTSE 100 predicted to start on front foot on BoE meeting week
A better start for the FTSE 100 is predicted on Monday, with investors more positive at the start of a week that is expected to bring a Bank of England interest rate cut.
On the futures market, the London index has been called 34 points higher, having finished last week at 9,649.03, down 18 points over the five days.
Asian markets are swathed in red this morning, echoing falls seen on Wall Street at the end of last week, when the Nasdaq tumbled 1.7%, the S&P 500 fell 1.1% and the Dow Jones slipped 0.5%.
Japan's Nikkei and Hong Kong's Hang Seng are down 1.3% and 1.5%, while India's Sensex is just below flat. US futures are moderately positive this morning.