Ftse 100 Index Rebounds

last updated on

Ftse 100 Index Rebounds

FTSE 100 Index Rebounds On Improved Sentiment

UK's FTSE 100 index has rebounded higher after closing the last 6 sessions in red. The rebound in FTSE 100 on Monday is driven by broader gains seen in the leisure and travel sector stocks.

Meanwhile, stock market investors are now awaiting the UK labor market data to get insight into the monetary policy and the economic health.

Ftse 100 Index Up By 0.6%

When checked last time, the FTSE 100 index was trading with a +0.6% index. Meanwhile, the FTSE 250 index, which consists of mid-cap stocks, was trading 0.4% higher.

Although the FTSE 100 is up on Monday, the index posted one of its worst weekly performances since October last year.

The key highlight of the day is gains in the leisure and travel sector, which are up by 1.3%. This has allowed a change in the sentiment and lifted the whole stock index higher.

Meanwhile, the energy & metal mining shares are also trading higher by 0.7% and 1.2%, respectively. Similarly, the banking sector is also up by 1.1%.

However, the stocks from the personal goods category failed to enjoy the improved market sentiment. As a result, this sector declined by 0.8% on Monday, with Burberry leading the way with a loss of 1.7%.

According to a recent survey, the UK labor market has cooled down significantly in August. If this turns out to be true, it will force the Bank of England to cut the rates.

The widely expected outcome of the BoE meeting is that the central bank will likely keep the rates unchanged. However, the ECB is highly likely to cut the rates once again.

Amidst all of this, the data from the USA is also worrisome and has made it difficult for the Federal Reserve to maintain the rates.

Hostmore, a famous UK restaurant operator, also declined by almost 70% after the company announced a change of plans.

Overall, the FTSE 100 index is showing signs of recovery after closing one of its worst weeks in recent history.

Trending Stories