Sept 9 (Askume) – London’s benchmark FTSE 100 rose more than 1% after a positive forecast from betting group Entain, with travel and leisure stocks surging, while investors await labour market data due later this week.
The blue-chip FTSE 100 index (.FTSE) closed up 1.1%, its biggest daily gain in a month. The mid-cap FTSE 250 index (.FTMC) rose 0.8%, its best day in three weeks.
Entain (ENT.L) said online revenue growth in the second half of its financial year exceeded expectations, and the travel and leisure stock (.FTNMX405010) rose 1.9%, the most in six weeks. Betting Group topped the FTSE 100 with a 5.3% gain.
Bloomberg News reports that HSBC (HSBA.L) is expanding its commercial and investment banking unit.The company is consideringThe integration will eliminate the lenders’ overlapping roles and cut costs. HSBC shares rose 1.9%, while the broader banking index (.FTNMX301010) gained 1.7%. HSBC declined to comment.
Most key subsectors recorded gains, with chemicals (.FTNMX552010) and automobiles & parts (.FTNMX401010) rising 1.9% and 1.7%, respectively.
However, luxury retailer Burberry (BRBY.L) fell 4.9% to its lowest level since November 2009 after Barclays downgraded the stock to “underweight” from “equal weight”. The broader Personal Supply Index (.FTNMX402040) was the biggest sectoral decliner, falling 3.1% to its lowest level in nearly 15 years.
Shares in British restaurateur Hostmore (MOREH.L) fell more than 90.8% after it abandoned plans to acquire pub chain TGI Fridays .
Meanwhile, a survey of recruiters showed Britain’s labour market contracted sharply last month, raising the prospect of a rate cut from the Bank of England.
Investors are closely monitoring labor market data and gross domestic product data released this week for more information on the stance of the Bank of England.
The Bank of England is expected to keep interest rates on hold at its meeting later this month, while the European Central Bank may cut rates at its meeting this week.
