London stocks opened the week on a firmer footing on Monday, with gains for tech and consumer names offsetting pressure from a softer UK housing market. Trade volumes are expected to be light with US markets closed for Labor Day.
The FTSE 100 rose 0.3% to 9,216.07, the FTSE 250 gained 0.2% to 21,656.63, and the AIM All-Share climbed 0.7% to 769.47.
Nationwide data showed UK house prices dipped 0.1% in August, reversing July’s 0.5% increase and falling short of forecasts for 0.2% growth. The average house price stood at £271,079, down from £272,664 in July. Annual growth eased to 2.1% from 2.4% as affordability pressures continued to weigh on buyers.
On the FTSE 250, Kainos jumped 14% after raising guidance. The IT services provider said trading had improved since April and now expects revenue at the top end of its forecast range, with adjusted pretax profit also in line with consensus.
Domino’s Pizza added 4.2% after launching a £20 million share buyback programme. While expectations for 2025 remain unchanged, the company flagged higher year-end net debt than previously guided.
Team Internet slid 5.5% after swinging to a $14.6 million interim loss, with revenue dropping 36% as the group transitions away from legacy AdSense monetisation.
Wall Street ended last week on a softer note. The Dow Jones Industrial Average slipped 0.2%, the S&P 500 fell 0.6% and the Nasdaq lost 1.2% on Friday. Despite the pullback, small-caps outperformed, with the Russell 2000 extending its winning streak to a third week. The Dow had touched a record high midweek before retreating.
Globally, investors are watching the Federal Reserve after Governor Christopher Waller reiterated support for a September rate cut, while political tensions escalated as President Donald Trump moved to dismiss Fed Governor Lisa Cook.