(Alliance News) - The FTSE 100 in London closed higher on Monday, outperforming its European counterparts, as investors eye this week's interest rate decision from the US Federal Reserve.

The FTSE 100 index closed up 7.20 points, 0.1%, at 8,147.03. The FTSE 250 ended up 260.63 points, 1.3%, at 20,084.79, and the AIM All-Share closed up 8.05 points, 1.1%, at 763.33.

The Cboe UK 100 ended up 0.1% at 814.08, the Cboe UK 250 closed up 1.2% at 17,335.92, and the Cboe Small Companies ended up 0.3% at 15,709.26.

In European equities on Monday, the CAC 40 in Paris was down 0.3% and the DAX 40 in Frankfurt closed down 0.2%.

On Monday, the FTSE 100 climbed to 8,189.14, its best-ever level, before falling after midday. In the year-to-date, the index is up 5.5%.

The Federal Reserve announces an interest rate decision on Wednesday. It is expected to leave rates unmoved, but with recent inflation readings coming in hot, and words from policymakers hawkish, focus will be on what Chair Jerome Powell has to say.

"Fed easing expectations have been pushed out. Odds of a June cut have fallen to around 10%, while July odds have fallen to 35% and September odds have fallen below 80%. A November cut is fully priced in, but the odds have fallen below 100% from time to time," analysts at Brown Brothers Harriman said.

US inflation pressure was hotter than expected last month, according to the Federal Reserve's preferred gauge released Friday.

The Bureau of Economic Analysis said the core personal consumption index gauge grew 2.8% in March, the annual pace of growth unmoved from February. In February, it had cooled slightly from 2.9% in January.

Stocks in New York were higher at the London equities close, with the DJIA, the S&P 500 index, and the Nasdaq Composite were all up 0.2%.

The pound was quoted at USD1.2554 at the London equities close Monday, higher compared to USD1.2453 at the close on Friday. The euro stood at USD1.0717 at the European equities close Monday, up against USD1.0676 at the same time on Friday.

However, against the yen, the dollar was trading at JPY156.64, lower compared to JPY157.41 late Friday.

In the FTSE 100, miner Anglo American added 3.8% amid growing conviction that it could receive another takeover bid.

Reuters reported BHP is mulling an improved bid for Anglo American. Citing a source, the news agency reported a sweetened offer could be made "in coming weeks". BHP last week Thursday confirmed it had offered to buy Anglo American in an all-share deal valuing the mining group at GBP31.1 billion. Anglo American rejected the offer.

"Investors have clearly spent the weekend sitting down with a cuppa and reading the papers as all the column inches about potential counter bids for Anglo American have got people reaching for the 'buy' button in their ISA or pension," said AJ Bell's Russ Mould.

Entain rose 2.1%, after it announced the repricing of two existing Term B loans, which it said will improve liquidity by about GBP295 million.

The Isle of Man-based bookmaker, which owns Ladbrokes and Coral, said the changes applied to a USD term loan worth USD1.74 billion, and a EUR term loan worth EUR1.03 billion.

In the FTSE 250, Playtech surged 12%.

The Isle of Man-based gambling software development company announced the expansion of its iPoker network into the Czech Republic, in partnership with Fortuna Entertainment Group.

"This launch represents a significant milestone for both Playtech and Fortuna, as it introduces poker into the Fortuna Entertainment Group for the first time. Through Playtech's iPoker network, Fortuna's players in the Czech Republic will now have access to a diverse range of poker games, benefitting from a strong international liquidity pool of players from all around the world, plus a high-quality player experience and state-of-the-art poker product," Playtech said.

Amongst London's small-caps, Oxford BioMedica shot up 10%.

The gene and cell-therapy company said it is seeing decent demand for its contract development and manufacturing organisation offering, as it moves away from the Covid-19 vaccine era.

Brent oil was quoted at USD87.27 a barrel at the London equities close Monday, down from USD88.26 late Friday.

Gold was quoted at USD2,337.40 an ounce at the London equities close Monday, higher against USD2,333.37 at the close on Friday.

In Tuesday's UK corporate calendar, there are first quarter results from HSBC, as well as full year results from Whitbread. There are trading statements from Coca-Cola HBC, Glencore, and Hargreaves Lansdown.

The economic calendar for Tuesday has a eurozone gross domestic product reading, as well as consumer price inflation data. There is unemployment data from Germany, alongside retail sales data.

By Sophie Rose, Alliance News senior reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.