FTSE 100 lifts to month-high amid strong banking stocks

The FTSE 100 has closed at its highest level for a month as it benefited from a strong opening on Wall Street.

Banks were among the top performers in London, with broad positivity around the financial sector helping to push Barclays higher despite the bank being hit with a £40 million fine by the financial watchdog.

London’s top index finished 29.60 points, or 0.36%, higher to end the day at 8,291.68.

Chris Beauchamp, chief market analyst at IG, said: “The past two weeks have helped repair a lot of the damage in the FTSE 100, which has continued its recovery from the 8,000 low.

“Unlike US indices, the FTSE 100 is still some way off a new high, but with yields around the globe softening the index has recouped some of its lustre.

“So far the market isn’t reading too much consumer weakness into the Kingfisher figures, preferring to hope for general Christmas splurge.”

Across the Channel, the other main European indexes were also higher as the recent stock rebound continued.

The Cac 40 ended 0.03% higher for the day and the Dax index was up 0.45%.

In the US, the main markets moved firmly higher as traders welcomed Donald Trump’s appointment of hedge fund manager Scott Bessent as Treasury secretary.

Meanwhile, sterling was slightly higher after Bank of England deputy governor Clare Lombardelli said she was most worried about upside risks in the inflation outlook.

The pound was up 0.15% at 1.255 US dollars and down 0.35% at 1.197 euros.

In company news, ITV surged in value on reports the group is being eyed for a possible takeover.

It followed reports by Sky News at the weekend that private equity firm CVC Capital Partners was looking to team up with other potential bidders for the British broadcaster.

Shares in the broadcaster were up 8.6% at 71.15p on Monday as a result.

B&Q owner Kingfisher was one of the notable fallers after it narrowed its profit forecast for the year and warned over higher taxes next year.

The home improvement retail group said it expects to see its tax bill increase by about £31 million next year due to plans unveiled in the Government’s Budget.

Kingfisher finished the day down 13.3% at 255.8p.

Elsewhere, Anglo American was in the green after it struck a deal to sell its remaining coal operations in Australia to a US rival for up to 3.78 billion US dollars (£3 billion).

Shares in the mining giant were 1.4% higher at 2,391p after it announced the deal to shareholders.

The price of oil dropped sharply on the back of reports of a ceasefire in Lebanon, easing concerns over supply in the region.

A barrel of Brent crude oil was up by 2.53% to 73.27 dollars (£58.39) as markets were closing in London.

The biggest risers on the FTSE 100 were JD Sports, up 9.34p to 102.8p, Entain, up 42p to 796.8p, easyJet, up 21.8p to 538.4p, Barratt Redrow, up 15.3p to 428.9p, and Prudential, up 21.8p to 656.8p.

The biggest fallers on the FTSE 100 were Kingfisher, down 39.1p to 255.8p, Fresnillo, down 19.5p to 633p, BAE Systems, down 36p to 1,297.5p, BP, down 4.85p to 387.85p, and Shell, down 29p to 2,574p.