London’s FTSE 100 bounces back on broad gains; Sustains momentum after upbeat forecast by Reuters

(Reuters) – London bounced back from six sessions of declines on Monday amid broader gains led by travel and leisure shares after an upbeat forecast from gambling group Entain, as investors awaited key data on labor market later in the week.

The blue-chip FTSE 100 was up 0.6 percent by 0715 GMT, while mid-caps were up 0.4 percent. The FTSE 100 last week posted its worst weekly performance since October 2023.

On Monday, travel and leisure shares led sector gains with a 1.3% rise, capped by a 5% rise in Entain, after the gaming group said its online revenue growth in the second half of this financial year was above his expectations.

Shares of industrial metals miners and energy rose 1.2% and 0.7% respectively, while heavy banks advanced 1.1%.

Most major subsectors traded higher, with the exception of personal goods which fell 0.8%, weighted by Burberry, which lost 1.7% after Barclays downgraded the stock to “underweight” from “equal weight” .

Meanwhile, a survey of recruiters showed that Britain’s job market cooled considerably last month, which could bolster the case for an interest rate cut from the Bank of England.

Investors are focusing on key labor market data and the country’s gross domestic product figures this week for more clues about the Bank of England’s stance on further interest rate cuts this year.

The Bank of England is expected to keep interest rates on hold at its meeting later this month, while the European Central Bank will cut at its meeting this week.

US data raised concerns about growth in the world’s largest economy and left investors divided on the path of the Federal Reserve’s policy easing cycle, dampening sentiment in global markets.

British restaurant operator Hostmore is down more than 70% after abandoning plans to buy pub chain TGI Fridays.