FTSE 100 live: London pares gains from fresh high last week while gold and Bitcoin surge

The news moving markets in London today: The capital’s premier blue-chip index fell from a fresh high last week’s close amid a quiet financial diary. Gold prices surged to a new record, while Bitcoin jumped past $42,000 for the first time in eight months.

The blue-chip FTSE 100 index ticked down 0.28 per cent to 7,508.43 at the close in London, while the midcap FTSE 250, which is more aligned with the health of the domestic economy, fell 0.3 per cent to 18,352.52.

The FTSE 100 climbed over the one per cent mark by close of play last week, marking a strong start to the Christmas season and the best daily close since mid-August.

Today’s moves were relatively muted as the financial diary was rather quiet for company results and announcements.

However, markets were dragged down by further falls in Brent crude prices as investors worried that new production cuts promised by OPEC+ will not hold, according to CMC Markets analyst Michael Hewson. Energy and mining stocks, including BP and Shell, fell.

Hewson added that investors have been encouraged by hope that interest rates could be cuts sooner than previously expected. 

Elsewhere, the price of gold surged past $2,100 per ounce to a new record on Monday.

“Heightened global geopolitical risk tends to increase demand for gold and while the potential for the Israel-Hamas conflict to escalate further may have reduced more recently, fundamentally geopolitical risks are higher now than they were six weeks ago,” noted Hargreaves Lansdown analyst Hal Cook.

Bitcoin also jumped, rising past $42,000 for the first time since April.

Winners and losers

Rolls-Royce was the biggest winner on the FTSE 100 on Monday afternoon, rising 3.2 per cent at the close after broker JPMorgan upgraded the stock to overweight from neutral. JD Sports also gained 2.8 per cent.

United Utilities, a water firm operating in the north-west of England, fell 1.8 per cent after a BBC Panorama investigation found that it wrongly downplayed numerous pollution incidents last year.

High gold prices were not enough to offset oil woes, dragging down miners Anglo American, Glencore and Rio Tinto by more than two per cent.

Gambling firm Flutter entertainment fell nearly two per cent. Conversely, another gambling firm, 888, was by far the biggest riser on the FTSE 250, surging more than 19 per cent after reportedly rejecting a £700m takeover bid from Playtech.

Market news

Saudi Arabia’s multi-billion pound public investment fund (PIF) has bought a near 50 per cent stake in Sir Rocco Forte’s luxury hotel chain and the new partnership is already rolling out plans to double the size of the chain in the Middle East. 

Gene and cell therapy firm Oxford Biomedica has reached a deal with Institut Mérieux to acquire ABL Europe in exchange for a 3.3 per cent stake in the London-listed company as it looks to ramp-up manufacturing. Shares gained nearly two per cent.

Meanwhile, outsourcing firm Capita is selling its 75 per cent stake in Fera Science, as the firm continues its strategy to simplify its business model. Shares rose nearly three per cent.