London Stocks Climb as Metal Mining Shares Surge and Barratt Gains on Acquisition News

London stocks rose on Monday with the FTSE 100 index up 0.6% driven by gains in metal mining shares and homebuilder Barratt Developments. Metal prices surged, benefiting miners, and Barratt jumped after the competition regulator waived a condition for its acquisition deal with Redrow.

London stocks finished higher on Monday, buoyed by a significant uptick in metal mining shares as both base and precious metal prices advanced. Homebuilder Barratt Developments also gained momentum after the competition regulator waived a condition for its deal to acquire Redrow.

The FTSE 100 index rose 0.6%, led by a 2.4% spike in precious metal miners, fueled by a record run in gold prices, which exceeded $2,500 per ounce. Industrial metal miners saw a 2.1% increase as copper prices hit a two-and-a-half week high, driven by improving demand in China and a weakening dollar.

Barratt Developments surged nearly 4%, topping the FTSE 100 gainers, following the regulator's greenlight for its acquisition of Redrow. Real estate stocks also moved higher by more than 1% due to increased buyer interest reported by Rightmove following the Bank of England's rate cut.

However, aerospace and defence stocks dipped 0.4%, mirroring declines in European defence shares after reports suggested Germany would reject new military aid requests for Ukraine to cut spending. Investors are keenly awaiting the Jackson Hole economic symposium where Federal Reserve Chair Jerome Powell will provide insights on future interest-rate policy.

The FTSE 250 mid-cap index climbed 0.5%, with Plus500 among the top performers, surging 4.1% after the online trading platform forecasted annual results above market expectations, citing a 13% rise in new customers in the year's first half.