China stimulus hopes boost investors as London markets rise

The FTSE 100 rose on Monday after China signalled that it would take steps to boost its economy.

Chinese policymakers said they would take “more proactive” fiscal measures next year to boost domestic spending, and that they would loosen fiscal policy.

London’s blue-chip index rose 43.47 points, or 0.52%, to end the day at 8,352.08.

Chris Beauchamp, an analyst at online trading platform IG, said: “It’s been a while since investors were treated to some China stimulus headlines, but the apparent change in policy stance following overnight inflation data has given markets hope of more concrete measures.

“The news has certainly put new life into the FTSE 100, which had been in search of a fresh driver following its late November recovery.

“China demand hopes and Middle East turmoil also bolstered oil prices, which have rebounded once more.”

At the end of the day in Europe Frankfurt’s Dax index fell 0.15%, while the Cac 40 in Paris rose 0.72%.

In New York a little while after markets had closed in Europe the S&P 500 had fallen 0.39%, while the Dow Jones was 0.09% lower.

On currency markets the pound was trading 0.25% up against the dollar at 1.278 and was 0.19% up against the euro at 1.209.

In company news, Domino’s Pizza Group has revealed it is facing a cost hit of about £3 million a year from recent Budget measures as it unveiled a new five-year agreement with franchisees.

The London-listed takeaway pizza chain said last month’s Budget move to increase employers’ national insurance contributions and further increase the national minimum wage had “significantly increased the cost of labour” for Domino’s and its franchise partners.

Shares fell 3.41% on Monday.

Elsewhere, glasses maker Inspecs has warned over annual earnings after weaker-than-expected recent trading.

The firm, based in Bath, Somerset, said it has seen sales grow over its second half so far but the improvement was not as strong as hoped.

It added that there had been a “slower recovery in our European markets and the deferral of orders for some of the group’s larger customers into 2025”.

Shares in the group fell 12.89%.

Brent Crude Futures were up 1.63% to 72.28 US dollars at the close of trading.

The biggest risers on the FTSE 100 were Vistry, up 40.5p to 710p, Antofagasta, up 85p to 1815.5p, Fresnillo, up 30.5p to 686p, Glencore, up 16.85p to 394.85p, and BP, up 16.1p to 393.85p.

The biggest fallers on the FTSE 100 were Whitbread, down 77p to 2911p, BAE Systems, down 30.5p to 1199p, Intercontinental Hotels Group, down 245p to 9900p, Auto Trader, down 18.2p to 826.8p, and Next, down 204p to 9796p.