UK Stocks Surge Amidst Global Market Optimism and Landmark CEO Appointment

UK stocks rose 1% on Monday, fueled by optimism over the potential end of a U.S. government shutdown and a significant leadership change at Diageo. The stock market rally followed a global trend, with Diageo shares jumping 7.2% after appointing former Tesco boss Dave Lewis as CEO. Investors anticipate forthcoming economic data and corporate earnings.

In a significant development on Monday, UK stocks rose by 1%, riding the wave of global market optimism amid signs that the U.S. government shutdown could soon conclude. This positive atmosphere was bolstered by Diageo's shares soaring 7.2%, marking their most substantial gain in five years, following the announcement of Dave Lewis, a former Tesco CEO, as their new leader.

Market expert Dan Coatsworth from AJ Bell commented on the situation, noting that despite Diageo's shares hovering near historic lows, the appointment of Lewis could signal a turn-around for the spirits giant. Investors, however, are cautioned to await tangible results from Lewis' leadership, given the previously disappointing performance.

Other market gains included a 4.5% rise in precious metal miners, coinciding with gold prices hitting a two-week high. Additionally, IAG, British Airways' parent company, saw a 3.4% rise after experiencing a significant drop, while refractory supplier RHI Magnesita reported strong profit margins, propelling its shares up by 20%.

(With inputs from agencies.)