London’s FTSE 100 gained 0.5% on Monday, reaching its highest level since early June, driven by a boost in energy shares and investor optimism about upcoming interest rate cuts in the U.S. and the UK. The FTSE 250 remained flat after a two-year high on Friday. Energy stocks surged 1.5% due to rising oil prices and Middle East tensions, with Shell and BP both up over 1%. Precious and industrial metal miners saw modest increases of 0.4% and 0.7%, respectively.
Conversely, personal care, drug, and grocery shares fell 1.4%, led by Reckitt Benckiser’s 9.2% drop amid numerous lawsuits. Market attention is on the U.S. Federal Reserve’s rate decision on Wednesday and the Bank of England’s update on Thursday. U.S. tech giants Microsoft, Apple, Amazon, and Meta will report earnings, while Pearson’s shares dropped 3.7% despite a 4% rise in profit.