By Ragini Mathur
(Reuters) -London stocks rose on Monday, with healthcare shares leading broad-based gains, while investors focused on a potential U.S. government shutdown that could delay key economic data.
The benchmark FTSE 100 was up 0.6% at 09:36 GMT, while the domestically focused FTSE 250 rose 0.6%.
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 seems that investors believe having a new man at the helm, someone who understands the business inside and out, could deliver fresh impetus to a business which is now on the right foot,” said Danni Hewson, head of financial analysis at AJ Bell.
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 rally in gold has been fueled by increasing expectations of U.S. rate cuts and growing concerns about a potential government shutdown, which has enhanced demand for safe-haven assets.
President Donald Trump is scheduled to meet with congressional Democratic and Republican leadership later in the day to discuss extending government funding.
Without an agreement, a shutdown would commence on Wednesday, potentially disrupting the release of key economic data, including the closely watched September non-farm payrolls report later this week.
On the domestic front, surveys published on Monday indicated that Britain’s labour market is showing additional signs of cooling, while businesses remain pessimistic about their prospects in the coming months, highlighting ongoing economic challenges.
Looking ahead, investors will be closely monitoring second-quarter GDP data, due on Tuesday, to better assess the current state of the UK economy.
(Reporting by Ragini Mathur in Bengaluru; Editing by Sonia Cheema)
