Market Analysis

London's FTSE 100 bounced back on Monday following six consecutive sessions of losses, driven by broad-based gains, especially in travel and leisure stocks, after a positive forecast from gambling group Entain. Investors are also looking ahead to key labour market data due later this week.

By 0715 GMT, the FTSE 100 had risen by 0.6%, while the mid-cap FTSE 250 gained 0.4%. Last week, the FTSE 100 recorded its worst weekly performance since October 2023.

Travel and leisure stocks led the day's gains, up by 1.3%, supported by a 5% surge in Entain shares. The gambling group reported that online revenue growth for the second half of its fiscal year had exceeded expectations.

Meanwhile, industrial metal miners and energy stocks climbed by 1.2% and 0.7%, respectively, while major banks advanced by 1.1%.

Most sectors saw upward momentum, with the exception of personal goods, which fell by 0.8%. Burberry was a notable laggard, declining 1.7% after Barclays downgraded the stock from "equal-weight" to "underweight."

A separate survey of recruiters indicated a marked slowdown in the UK's labour market last month, potentially strengthening the case for interest rate cuts from the Bank of England.

This week, investors are closely watching labour market data and GDP figures for further insights into the Bank of England's potential rate decisions. While the central bank is expected to keep rates unchanged later this month, the European Central Bank is likely to introduce rate cuts at its upcoming meeting.

In the U.S., economic data stoked concerns about growth in the world's largest economy, leading to mixed investor sentiment regarding the Federal Reserve’s next steps in its rate-cutting cycle.

On a separate note, British restaurant operator Hostmore saw its shares plunge over 70% after scrapping plans to acquire pub chain TGI Fridays.

Paraphrasing text from "Reuters" all rights reserved by the original author.