London stocks stall as earnings, economic insights loom

London’s FTSE 100 index remained unchanged on Monday, balancing gains in the travel and leisure sector against a decline in defence stocks, as reported by Reuters.

The index maintained its level even after achieving record highs in 11 of the past 13 sessions, influenced by the Bank of England’s (BoE) dovish position and a weaker pound, which hovered around $1.2524.

Investor sentiment was cautious as they anticipated further corporate disclosures and insights from BoE officials regarding the UK’s economic landscape. Danni Hewson, AJ Bell’s financial analysis lead, noted that while optimism persists, investors are on the lookout for new data to drive market movement.

Defence company BAE Systems saw its shares drop by 2.8 per cent following a downgrade by BofA Global Research, contributing to the aerospace and defence sector’s underperformance within the FTSE 350.

Attention is now shifting towards upcoming labour market figures due Tuesday and commentary from BoE’s chief economist Huw Pill and monetary policy committee member Megan Greene, which could hint at the timing of policy adjustments.

Additionally, US inflation figures will be scrutinised for indications of the Federal Reserve’s rate trajectory. Market expectations include two rate cuts in 2024, with predictions of the easing cycle commencing in August.

In corporate movements, Diploma Plc’s shares soared by 5.3 per cent, reaching an all-time high, buoyed by the company’s positive outlook.
Conversely, mining giant Rio Tinto experienced a 1.2 per cent setback after reporting an overnight derailment of an autonomous train at its iron ore operations in Western Australia.