By Utkarsh Hathi
(Reuters) -UK’s FTSE 100 touched a record closing high on Monday as global stocks climbed on signs that a historic U.S. government shutdown could be nearing its end, while Diageo surged after it appointed a former Tesco boss as its CEO.
Shares of the world’s largest spirits maker gained 5.2%, recording their biggest percentage gain in more than three years, after the company appointed Dave Lewis as CEO, turning to an outsider to revive growth during a challenging period.
“The stock is unloved after several years of disappointment and the appointment of a highly respected CEO could be enough to win over many investors,” said Dan Coatsworth, head of markets, AJ Bell. “However, Lewis knows he will ultimately be judged on results, not hope.”
Diageo’s shares were still hovering near decade-lows, having lost about 27% of their value this year.
The blue-chip FTSE 100 added 1.1% to surpass last week’s peak, while the mid-cap FTSE 250 index climbed 0.9%.
Global shares rallied after the U.S. Senate moved forward on a measure to end the federal shutdown that has taken a toll on the U.S. economy while the Federal Reserve flies blind with limited government reporting of economic data.
UK stocks recorded a weekly loss on Friday after a selloff in high-flying U.S. tech stocks rippled through global markets and the Bank of England held interest rates as expected.
However, a narrow vote and signs that Governor Andrew Bailey might soon join those seeking a rate cut boosted prospect of a move in December once the government’s budget was unveiled.
Investors will keep an eye on third-quarter GDP data and more corporate earnings this week.
UK’s precious metal miners and industrial metal miners climbed 5.1% and 1.4%, respectively, as gold hit two-week high and copper prices climbed.
Among other stocks, British Airways parent IAG gained 3.4%, having tumbled 11.6% on Friday after reporting weak U.S. demand.
London-listed shares of RHI Magnesita jumped 16.9% after the refractory products supplier reported robust profit margins and reaffirmed its full-year forecast.
(Reporting by Utkarsh Tushar Hathi in Bengaluru; Editing by Harikrishnan Nair)
