FTSE climbs higher as traders welcome Sunak’s appointment

This came amid a broad-based improvement in global market sentiment, boosted by easing calls for high interest rate hikes.

The FTSE The 100 ended the day up 44.26 points, or 0.64%, at 7,013.99.

Improved trading sentiment was also evident in long-term gilt gains, which fell further on Monday.

Sterling ended the day marginally lower after a steady decline after it bounced earlier on Monday on initial speculation that Mr Sunak was on track to take the top job.

The pound was down 0.06% against the dollar at 1.129 and 0.13% lower against the euro at 1.143 at the close.

“Markets have been signaling that Rishi Sunak will be given time to deliver, with falling gold yields and British the economy is getting about a second chance to get back on track,” said Danny Hewson, financial analyst at AJ Bell.

In another place c Europespeculation that the rapid rise in interest rates may slow contributed to the overall positive market sentiment.

Michael Hewson, chief market analyst at CMC Markets UK, said: “European markets started the week on a positive note, helped by the continued fall in bond yields on this side of the Atlantic, which have fallen further amid weaker commodity prices and we may see a slowdown in the central bank rate hike cycle as growth slows towards the end of the year.’

By the end of the session, Germany’s Dax was up 1.65% and France’s Cac was up 1.7%.

In the US, Wall Street markets picked up where they left off on Friday to take gains, despite new economic PMIs showing a slowdown in activity this month.

In company news, Pearson shares rose after the educational publisher posted a 7% jump in sales and confirmed it was on track to cut costs by £100m by 2023.

The FTSE 100-listed firm said the sales growth was driven by the resumption of English language learning after the pandemic and the normalization of exam timetables.

Pearson shares rose 77.6p to 965p at the close of play.

Auto Trader saw shares improve on Monday after the car aftermarket firm offloaded its Irish subsidiary Webzone.

Auto Trader has confirmed the sale of Webzone, which operates the Carzone brand, for around €30m (£26m) to Mediahuis Ireland.

Shares in the London-based company rose 15.8 pence to 502 pence.

Oil prices were lower at the close after a volatile session amid concerns over weaker demand in China.

The price of Brent oil fell by 0.51% to 93.02 US dollars per barrel. London markets are closed.

The biggest gainers in the FTSE 100 were Pearson, up 77.6p to 965p, Persimmon, up 54.5p to 1,273p, SSE, up 58p to 1,508p, Barratt, up 13p to 361.2p, and Berkeley group, up 123p to 3429p. .

Biggest decliners of the session were Prudential down 82.2p to 804.2p, Fresnillo down 19.6p to 698.4p, Antofagasta down 25.5p to 1,122.5p, Scottish Mortgage Investment Trust, down 13.8p to 734.4p and Anglo American, down 47.5p to 2,686.5p.