(Reuters) -UK’s blue-chip FTSE 100 index rose on Monday, led by gains in industrials and mining stocks as cooling trade tensions lifted risk appetite, while homebuilders slid following a survey indicating stagnant housing prices.
The blue-chip FTSE 100 gained 0.4% to 9,390 points as of 1046 GMT, having dropped 0.9% the previous session. The mid-cap focused FTSE 250 was up 0.2%.
Market optimism continued from Friday when Wall Street ended a volatile session higher, as investors assessed U.S. President Donald Trump’s remarks on China, while quarterly results from regional banks eased concerns about credit risks. [.N]
Trump said his proposed 100% tariff on goods from China would not be sustainable, easing worries over escalating trade tensions between the world’s top economies.
The index of aerospace and defense stocks advanced 1.9%, tracking European peers. Babcock and Rolls-Royce rose 2.4% and 2%, respectively, and were among the top performers in the FTSE 100.
The index of precious metal miners rose 0.7%, as gold prices edged higher. [GOL]/
The banks index gained 0.4%, recovering after concerns about credit quality in U.S. regional banks caused a global selloff in the financial sector.
However, the homebuilders index lost 1.5%. A survey by property website Rightmove showed the asking prices for British homes rose only 0.3% in the four weeks ending October 11, which is below the seasonal average.
House prices in Britain typically pick up in the autumn before a Christmas lull.
Homebuilder Persimmon lost 2.2% and Barratt Redrow fell 1.9%, leading losses in the FTSE 100.
Among other housing stocks, Bellway shed 1.6%, Vistry down 1.2%, Taylor Wimpey dropped 1.9% and Berkeley Group Holding lost 1.3%.
Among individual stocks, B&M slumped nearly 20% after the discount retailer cut its full-year forecast over an accounting error, and announced the resignation of CFO Mike Schmidt. The stock is headed for its worst day ever.
Secure Trust Bank slipped 5% after the company said it would need to raise its provision by about 16 million pounds ($21.5 million) to a total of 21 million pounds for compensating customers of the motor financing mis-selling scandal.
(Reporting by Medha Singh and Avinash P in Bengaluru; Editing by Vijay Kishore)
