London stocks started the week on a tepid note, with the FTSE 100 dipping 0.1% and the FTSE 250 holding steady. Resource shares led the declines, but gains in non-life insurers helped offset the losses. The pound also saw a slight gain against the dollar.
Investors are eagerly awaiting fresh economic data this week, including crucial consumer prices index figures in the U.S. and the release of Britain’s GDP numbers. These reports could provide insight into the future direction of interest rate cuts in both economies.
Last Friday, the FTSE 250 hit a two-year high following the Labour Party’s victory. Hiscox, a non-life insurer, saw a significant boost of 13.4% after reports of takeover interest. This positive momentum in the non-life insurers sector helped buoy the market amidst the broader declines in resource and energy shares.
In corporate news, Britvic saw a surge of 4.5% after accepting a sweetened bid from Carlsberg worth 3.3 billion pounds ($4.2 billion). Additionally, Ocado’s shares rose by 5.4% following the announcement of plans to expand its partnership with Japan’s Aeon by building a third robotic warehouse.
With the UK election now in the rearview mirror, investor attention will likely shift back to economic data and the Bank of England’s upcoming meeting in August. As markets continue to navigate global uncertainties, including geopolitical tensions and energy supply disruptions, the outlook remains uncertain.
