Metal Gains Lift FTSE 100 Amidst Kingfisher's Stock Tumble

The UK's FTSE 100 surged to a three-week high, bolstered by strong metal prices despite a significant drop in Kingfisher shares due to a profit warning. Industrial metal miners gained from improved market sentiment and a weaker dollar. Inflation concerns persist as economic growth remains limited.

The FTSE 100 reached a three-week high on Monday, driven by a weaker dollar which boosted metal prices, despite a sharp decline in Kingfisher's shares following a profit warning. Kingfisher's shares plummeted 13.5%, largely due to a projected £45 million hit to its 2025/26 profits from tax hikes in the UK and France.

Industrial metal miners led the FTSE 100's 0.2% rise, with companies like Glencore, Rio Tinto, and Anglo American seeing gains due to rebounding copper prices. These gains were fueled by increased investor confidence following the appointment of Scott Bessent as U.S. Treasury Secretary, sparking hopes for fiscal restraint.

Bank of England Deputy Governor Clare Lombardelli expressed concerns about the potential for higher than forecasted inflation, emphasizing the need for cautious interest rate reductions. Meanwhile, economic indicators showed mixed consumer sentiment and diminishing household disposable income, foreboding a subdued holiday season spending.

(With inputs from agencies.)