London stocks climb as investors bet on BoE rate cut

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window) * FTSE 100 up 0.9%; FTSE 250 up 0.66% * UK stocks gain as analysts predict BoE rate cut * Precious metals, banks, and personal goods stocks boost market sentiment UK stocks edged higher on Monday, starting the week on a positive note, with markets having almost fully priced in an interest rate cut by the Bank of England later this week. The UK's blue-chip FTSE 100 jumped 0.9% by 10:26 GMT, while the midcap FTSE 250 index added 0.66%.

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window) *

FTSE 100 up 0.9%; FTSE 250 up 0.66% *

UK stocks gain as analysts predict BoE rate cut *

Precious metals, banks, and personal goods stocks boost market sentiment UK stocks edged higher on Monday, starting the week on a positive note, with markets having almost fully priced in an interest rate cut by the Bank of England later this week.

The UK's blue-chip FTSE 100 jumped 0.9% by 10:26 GMT, while the midcap FTSE 250 index added 0.66%. Both indexes ended lower for a second consecutive week of declines on Friday. According to a Reuters poll, analysts expect a narrow 5-4 vote to lower the benchmark rate to 3.75% from 4.0%, marking the first reduction since August and bringing borrowing costs to a three-year low.

Governor Andrew Bailey's stance is seen as pivotal after recent data showed inflation easing to 3.6% in October, with further declines expected. Analysts see Bailey's vote as crucial, with easing inflation strengthening the case for a cut. While rate expectations dominated sentiment, gains in precious metals added further support to the market.

An index of personal goods, dominated by luxury names, led with a 2.3% jump, after China announced plans to expand exports and imports next year as part of efforts to promote what it called "sustainable" trade. Burberry rose 2.6% and Watches of Switzerland Group added 2.3%. Precious metal miners were up 1% as gold held near a seven-week high and silver extended gains against a softer dollar.

Banks were also a standout, up 1.3%, with with Standard Chartered gaining 2.1% and Barclays adding 1.8%. Industrial metals and mining stocks advanced 1.25%, with Glencore up 1.3% and Antofagasta up 2.8%. Among individual stocks, Hikma Pharmaceuticals fell 1.4% to the bottom of the FTSE 100 after the drugmaker said its CEO Riad Mishlawi is stepping down, with Executive Chairman and former CEO Said Darwazah assuming the responsibilities of the top role.

Primark-owner Associated British Foods fell 1% after Jefferies cut its rating to "underperform" from "hold" and cut its target price to 1800 pence from 2000 pence. Britain's biggest defence company BAE Systems slipped 1% in step with weaker European defence sector.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)