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Highlights
FTSE 100 rose, nearing record highs amid gains in Rolls-Royce, Marks & Spencer, and housebuilders
Interest rate cut outlook boosted by weakening UK labour market data
Bellway lifted FTSE 250 with strong spring performance in home
The FTSE 100 index climbed closer to its historical peak, supported by gains in industrials, retail, and housing. Key movements included strength in Rolls-Royce plc (LON:RR) and Marks & Spencer Group plc (LON:MKS), while Bellway plc (LON:BWY) gave the FTSE 250 a notable boost. The FTSE 100 advanced modestly, coming within points of its previous record closing level, while the FTSE 250 also saw positive movement due to bullish momentum in the housing segment.
Rolls-Royce Hits New Milestone
Shares of Rolls-Royce rose to an all-time high after the engineering group secured a government contract to develop the UK’s first small modular reactors. The announcement marked a significant step in the expansion of the company's nuclear energy capabilities. The agreement underscores Rolls-Royce’s strategic positioning within the defence and energy sectors. Its stock moved above a symbolic price barrier during the session before ending on a strong note.
Retail Sector Gains with Marks & Spencer Recovery
Marks & Spencer’s stock climbed after the company resumed online operations. The platform had been offline for more than a month due to a cybersecurity incident. The retail group’s digital channels serve as a major driver of growth in its food and clothing segments. The restoration of services was met with a positive market response, placing M&S among the leading risers within the consumer segment.
Housebuilders Climb Amid Mortgage Cost Outlook
Homebuilding stocks saw gains following fresh economic data. Companies including Persimmon plc (LON:PSN), Barratt Developments plc (LON:BDEV), Redrow plc (LON:RDW), and Taylor Wimpey plc (LON:TW) moved higher, supported by expectations of declining mortgage costs. The latest labour market figures revealed a rise in the unemployment rate and a slowdown in wage increases, factors that could influence monetary policy decisions by the Bank of England.
Bellway Drives Momentum in FTSE 250
Bellway posted a robust update that lifted its position within the FTSE 250. The company reported steady demand across its housing developments during the spring season. Its stock responded with a marked increase, reflecting optimism within the broader residential construction industry. The update reinforced confidence in activity across regional housing markets.
Rate Cut Expectations Shift Market Sentiment
The latest employment data released for the UK showed a decrease in the number of payrolled employees and a rise in the unemployment rate. The figures represented the sharpest drop outside of periods impacted by the global health crisis. Alongside weaker wage growth, these developments shaped expectations of a looser monetary stance by the Bank of England. Market participants are now adjusting to the prospect of multiple rate adjustments in the coming quarters.
Energy and Oil Stocks Add Support
Energy shares also contributed to gains across the indices, benefitting from upward movements in oil prices. The combination of industrial momentum, housing strength, and energy support created a broadly positive backdrop for the London-listed large caps.
