FTSE 100 Starts Strong Amid Optimistic Market Sentiment

London’s premier stock index, the FTSE 100, kicked off the week with a positive surge, buoyed by early gains across the market before settling slightly. AJ Bell investment director Russ Mould noted the strong start, with resource, energy, and financial sectors driving the upward momentum.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, highlighted the optimism surrounding interest rates and a robust session in Asian markets overnight as contributing factors to the positive market sentiment.

The week ahead is set to be dominated by key economic data releases, including manufacturing reports and the eagerly awaited Non-Farm Payrolls update on Friday. Traders are also eyeing the European Central Bank’s interest rate decision for potential signs of a rate cut, which could influence global market direction.

JD Sports emerged as the top gainer on the FTSE 100, surging 7.4% and reversing Friday’s losses following the release of its annual results. Meanwhile, St James's Place continued its recovery with a 4% climb after an upgrade from JP Morgan.

The market saw a broad rally on Monday, with 87 of the index constituents trading positively. However, GSK faced a setback as its shares tumbled 9% amid news of litigation in Delaware related to its Zantac product potentially causing cancer, reigniting investor concern over the company’s future.

Investors will closely watch this week’s ECB decision and the possibility of a rate cut, which may set the tone for central bank actions globally. A potential IPO from Chinese fast-fashion retailer Shein and ongoing developments in the Zantac case will also be closely monitored by market participants.