UK Stocks Flat as HSBC Slips on Court Loss; FTSE Holds Near Record Levels
London-listed stocks closed flat on Monday as investors took a breather following a strong rally last week. HSBC shares dipped after the banking giant warned that its upcoming third-quarter results would take a hit following a partial loss in a court appeal in Luxembourg.
HSBC Faces $1.1 Billion Hit from Madoff Case
HSBC stock fell as much as 2.4% intraday before paring losses to end 0.3% lower. The bank said it will take a $1.1 billion provision in its third-quarter earnings report, set to be released on Tuesday. The charge stems from an appeal related to the Bernard Madoff Ponzi scheme, one of the largest financial fraud cases in history.
FTSE Indexes Hold Steady After Rally
Both the FTSE 100 — which tracks globally focused companies — and the FTSE 250, representing more domestic firms, ended the session unchanged.
The FTSE 100 touched a record high last week, while the FTSE 250 reached its strongest level in nearly four years. The rally came as cooling inflation data raised hopes of interest rate cuts by the Bank of England in the coming months.
“The FTSE 100 has had a strong run,” said Chris Beauchamp, Chief Market Analyst at IG Group. “There’s optimism about the UK market, and while it’s not overwhelming, investors still see plenty of value in the index.”
Global Sentiment and Sector Moves
Investor sentiment remained upbeat globally amid growing optimism that the U.S. and China could reach a trade deal soon. This optimism pushed gold prices below $4,000 per ounce, pressuring UK-listed precious metal miners, which declined 5.8% on the day.
Individual Movers: Goodwin Surges, Greencore Falls
Goodwin PLC jumped 33.3% to a record high after the engineering company projected annual profits above market expectations and announced a surprise one-off interim dividend.
Meanwhile, Greencore shares fell 1.6% after Britain’s Competition and Markets Authority (CMA) said its proposed £1.2 billion ($1.61 billion) merger with peer Bakkavor could harm competition in the own-label chilled sauces market.
Manufacturing Outlook Weakens
In a broader economic update, trade body Make UK reported that British manufacturers are investing at their lowest rate in new equipment since 2017. The group urged the government to simplify tax incentives in the upcoming annual budget to encourage productivity and modernization in the sector.
