The FTSE 100 index experienced a slight increase on Monday, rising 0.2% to approximately 8,210, as traders reacted to the latest economic data and the kickoff of the Labour Party conference.
Meanwhile, European markets also saw gains, with the DAX climbing 0.7% and the CAC 40 inching up 0.1%.
This positive momentum follows the release of PMI data from S&P Global, which indicated a pullback in the Eurozone, highlighted by a composite PMI output index reading of 48.9—signaling contraction.
In the UK, the preliminary estimate of the S&P Global Composite PMI fell to 52.9, down from 53.8.
While still above the growth threshold of 50, this decline raised concerns about a slowdown in business activity, partly attributed to fears of higher taxes among firms.
Economists suggest that the data reflects a return to a more sustainable growth pace following earlier post-recession gains.
Despite the dip in the pound against the dollar to $1.3298, it reached a two-year high against the euro, indicating diverging economic cycles between the UK and Eurozone.
Stock highlights: Rightmove and Marks & Spencer stand out
Amidst this mixed economic landscape, several individual stocks experienced notable movements.
Rightmove, the UK’s leading property listing platform, gained about 1.5% following news of a £6.1 billion acquisition bid from Australia’s REA Group, marking their third attempt to acquire the company.
This development highlights growing international interest in the UK property market and suggests potential growth opportunities for Rightmove.
Marks & Spencer (M&S) also posted a positive performance, with shares rising by 1.4% after UBS issued a “Buy” rating and set a target price of 430p.
M&S’s revitalization initiatives, including store modernization and enhanced online capabilities, are paying off, boosting confidence in the retailer’s future growth.
In contrast, luxury fashion brand Burberry saw its shares decline nearly 2.9%, reflecting concerns over weaker consumer demand amid broader economic uncertainties.
Similarly, B&M European Value Retail faced a 2.8% drop following a downgrade from UBS to “sell,” highlighting the challenges facing the retail sector.
As the week progresses, investors will closely monitor economic indicators and earnings reports, especially following Chancellor Rachel Reeves’ speech expected to outline the government’s fiscal strategies and commitment to avoiding a return to austerity.
With ongoing volatility in both domestic and global markets, stocks like Rightmove and M&S illustrate resilience despite the pressures faced by other sectors.
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