FTSE 100 Rebounds Amid Travel Stocks Surge

The FTSE 100 rebounded from six consecutive sessions of declines, driven by gains in travel and leisure stocks. The rise came after an optimistic forecast from gambling group Entain. Investors are closely watching labour market data for cues on the Bank of England's interest rate policies.

London's FTSE 100 rebounded from six consecutive sessions of declines on Monday, driven by broader gains led by travel and leisure stocks. The uptick came after a positive forecast from gambling group Entain, while investors remain focused on key labour market data expected later in the week.

The blue-chip FTSE 100 gained 0.6% by 0715 GMT, and the mid-cap FTSE 250 rose 0.4%. Following its worst weekly performance since October 2023, travel and leisure stocks led sectoral gains with a 1.3% increase, largely lifted by a 5% surge in Entain. This rise came after the gambling group stated its online revenue growth exceeded expectations.

Industrial metal miners and energy shares increased by 1.2% and 0.7%, respectively, alongside a 1.1% advance in heavyweight banks. However, personal goods slipped by 0.8%, mainly due to Burberry's 1.7% decline after a downgrade by Barclays. A recruitment survey indicated a noticeable cooling in Britain's labour market last month, which could support calls for interest rate cuts from the Bank of England. Investors are keenly awaiting this week's data on the labour market and GDP for more clues on the Bank's policy stance.

The British central bank is expected to hold rates steady in its upcoming meeting, while the European Central Bank may cut rates this week. Meanwhile, data from the U.S. has raised concerns about growth in the world's largest economy, leaving investors divided on the Federal Reserve's policy direction.

British restaurant operator Hostmore saw a sharp decline of over 70% after it abandoned plans to acquire the pub chain TGI Fridays.

(With inputs from agencies.)