London midday: FTSE extends gains amid hopes of end to US govt shutdown

London stocks had extended gains by midday on Monday amid hopes that the longest US government shutdown in history could be coming to an end.

The FTSE 100 was up 1% at 9,774.87.

Russ Mould, investment director at AJ Bell, said: "Glimmers of hope that an end might be in sight to the longest running US government shutdown in history put markets in a positive mood.

"A vote in the Senate is an important first step but any agreement still needs to clear a vote in the House of Representatives along with several other hurdles. A key impact on the markets of the impasse, beyond the hit to the wider economy, has been the lack of data as key releases on areas like the jobs market have been delayed.

"This has created a considerable dose of the uncertainty which markets famously hate and it is also hampering the ability of the Federal Reserve to make informed decisions on interest rates.

"In this context, it’s not a surprise to see investors react positively to signs of progress, with Asian shares higher, indices on the front foot in Europe and US futures pointing towards gains when Wall Street opens later.

"Selling in some traditional defensive names, which have a material weighting in the index, meant the FTSE 100 slipped a bit behind its European counterparts on Monday."

In equity markets, drinks giant Diageo surged as it named Haleon chair Dave Lewis as its next chief executive.

Lewis, the former chief executive of Tesco, will take up the role on 1 January 2026, replacing Debra Crew, who quit in the summer.

Richard Hunter, head of markets at Interactive Investor, said: "The announcement is clearly being seen as a potential inflection point for the group given the new hire’s proven ability in brand building, and where the shares have been under some considerable pressure of late, having fallen by 28% so far this year.

"The news may prompt investors to reconsider the strength of Diageo’s premier brand portfolio."

Precious metals miner Fresnillo and gold miners Hochschild and Endeavour all shone as gold prices advanced amid renewed expectations of a Federal Reserve rate cut, while RHI Magnesita rocketed after a trading update.

IT services provider Kainos edged up as it raised its interim dividend and announced a new share buyback programme despite a double-digit decline in first-half profits due to increased investment and higher labour costs.

On the downside, global fund administration platform JTC slumped after saying it had agreed a £2.3bn takeover by private equity firm Permira, beating interest from rival Warburg Pincus. JTC shareholders would receive £13.40p a share, below Friday’s closing price of £13.58. Shares in the company have surged from 897p on August 13 when Permira made its first offer.

Iron ore company Ferrexpo was weaker as it said the supply of power to its operations has been affected and production and exports will be interrupted following attacks on Ukrainian energy infrastructure early on Saturday.

Market Movers

FTSE 100 (UKX) 9,774.87 0.95%
FTSE 250 (MCX) 22,018.30 1.12%
techMARK (TASX) 5,506.91 0.79%

FTSE 100 - Risers

Diageo (DGE) 1,853.00p 7.33%
Fresnillo (FRES) 2,300.00p 4.93%
International Consolidated Airlines Group SA (CDI) (IAG) 379.50p 3.63%
Smurfit Westrock (DI) (SWR) 2,754.00p 3.11%
Scottish Mortgage Inv Trust (SMT) 1,110.50p 3.06%
Burberry Group (BRBY) 1,181.00p 2.96%
Ashtead Group (AHT) 4,810.00p 2.65%
3i Group (III) 4,318.00p 2.64%
Persimmon (PSN) 1,231.50p 2.63%
Barclays (BARC) 414.90p 2.52%

FTSE 100 - Fallers

BT Group (BT.A) 176.50p -1.59%
Sainsbury (J) (SBRY) 344.80p -1.26%
Compass Group (CPG) 2,484.00p -0.84%
National Grid (NG.) 1,162.00p -0.73%
Tesco (TSCO) 471.60p -0.57%
Severn Trent (SVT) 2,804.00p -0.53%
Prudential (PRU) 1,064.00p -0.42%
Haleon (HLN) 359.70p -0.42%
United Utilities Group (UU.) 1,209.50p -0.41%
Unilever (ULVR) 4,601.00p -0.37%

FTSE 250 - Risers

RHI Magnesita N.V. (DI) (RHIM) 2,295.00p 15.10%
Ceres Power Holdings (CWR) 397.20p 11.95%
Ocado Group (OCDO) 210.60p 6.90%
Hochschild Mining (HOC) 352.60p 5.19%
THG (THG) 45.24p 4.97%
Anglo-Eastern Plantations (AEP) 1,375.00p 4.96%
Polar Capital Technology Trust (PCT) 471.50p 4.31%
Foresight Group Holdings Limited NPV (FSG) 488.00p 4.05%
Allianz Technology Trust (ATT) 528.00p 3.94%
4Imprint Group (FOUR) 3,375.00p 3.85%

FTSE 250 - Fallers

JTC (JTC) 1,290.00p -5.01%
Helios Towers (HTWS) 163.60p -2.15%
Baltic Classifieds Group (BCG) 260.00p -1.33%
Barr (A.G.) (BAG) 673.00p -1.03%
Me Group International (MEGP) 173.20p -1.03%
Partners Group Private Equity Limited. (EUR) (PEY) 10.50p -0.94%
VinaCapital Vietnam Opportunity Fund Ltd. (VOF) 439.00p -0.90%
Patria Private Equity Trust (PPET) 590.00p -0.84%
Empiric Student Property (ESP) 78.40p -0.63%
Chemring Group (CHG) 540.00p -0.55%