London's stock market experienced an upward trend on Monday, buoyed by an empty economic data calendar that allowed investors to digest the previous week's monetary policy changes and the recent US election results. The FTSE 100 index, a barometer for the UK's largest companies, ended the day up by 0.65% in the green.
In a significant monetary policy move, the Bank of England lowered the bank rate by 25 basis points to 4.75%, a decision that was anticipated. Governor Andrew Bailey emphasized the necessity for policy to maintain a restrictive stance, although he did not provide any insights regarding potential tariff risks for the UK.
BofA Global Research commented, "The Governor didn't give any insights on his thinking on tariffs risks for the UK, saying that he will not comment on unannounced policy. We think there are some small downside growth risks from trade policy uncertainty. It is not clear if or when the US imposes tariffs on the UK.
But if tariffs are imposed, the impact on UK growth could be contained, given the majority of UK exports to the US are services." Turning to corporate developments, Croda International's stock led the blue-chip gainers with an impressive 5.24% increase after announcing its third-quarter sales figures.
The specialty chemicals firm reported that its group sales for the three months ending September 30 surged year over year, reaching 407 million pounds sterling, up from 387 million pounds. CEO Steve Foots noted, "Our third quarter sales performance reflects ongoing momentum in our Fragrances and Flavours business within Consumer Care and improved sales in our agriculture businesses in Life Sciences.
While we are benefiting from more stable customer inventories and demand in key markets and geographies, the overall trading environment remains challenging." NatWest Group also saw a positive performance, climbing 3.73% higher following the UK government's completion of a stake sale in the British bank worth 1 billion pounds, thereby reducing its shareholding to 11.4%..