London stocks opened higher on Monday, with investors bracing for a key Bank of England decision and a wave of earnings later in the week.
The FTSE 100 climbed 0.2% to 9,738.46, the FTSE 250 edged up 0.1% to 22,187.34, and the AIM All-Share rose 0.2% to 773.79.
Attention is squarely on Thursday’s interest rate call at the Bank of England. Softer inflation data has made the decision more finely balanced, with some analysts warning that a quarter-point rate cut cannot be ruled out. While headline inflation remains at 3.8%, policymakers may prefer to wait for clearer signs that price pressures are easing before acting.
In New York on Friday, Wall Street finished modestly higher, with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 0.3% and the Nasdaq Composite up 0.6%.
BP rose 0.9% after agreeing to sell non-controlling stakes in its Permian and Eagle Ford midstream assets to funds managed by Sixth Street for $1.5 billion. The transaction will reduce BP’s ownership in the assets to 51% and 25%, respectively, freeing up capital while retaining operational control. BP said the deal allows it to “maximise returns” from its US onshore business.
Vodafone was the day’s biggest faller, down 2.6%, after UBS cut its rating to sell from neutral, even as it raised its price target to 80p from 72p.
Ceres Power jumped 9.2% after Goldman Sachs more than doubled its price target to 480p from 246p, maintaining a buy rating. The hydrogen technology firm, which joined the FTSE 250 last week, was among the morning’s strongest mid-cap performers.
Empiric Student Property shares fell 0.8% and Unite dropped 1.8% as Empiric warned its booking cycle for the 2025/26 academic year had “moderated”, with occupancy at 89% versus 95% a year ago.
The firm cited weaker Chinese student bookings and said hitting full occupancy targets could be difficult. Unite noted the figures were slightly below its assumptions but still consistent with guidance. The CMA is currently reviewing Unite’s planned £710 million takeover of Empiric.
In Dublin, Ryanair shares fell 1.6% despite reporting strong first-half results, with pretax profit up 40% to €2.89 billion on 13% higher revenue of €9.82 billion. The airline raised its traffic target to 207 million passengers but cautioned that year-on-year comparisons will toughen later in the year.
On AIM, Kazera Global jumped 11% after confirming that an objection to its Whale Head Minerals licence had been withdrawn, clearing the way for a mining right to be granted soon. Shuka Minerals tumbled 18% after confirming that expected financing from Kenya-based Gathoni Muchai Investments had been delayed again, citing “administrative issues”.