London stocks clock monthly gains; focus shifts to BoE rate decision

Reuters01:24
UPDATE 1-London stocks clock monthly gains; focus shifts to BoE rate decision

FTSE 100, FTSE 250 flat

London-listed Georgian banks slip after EU talks halted

BoE warns of risks from rise in global trade barriers

Spire Health jumps on reported Indian M&A interest

Updates to market close

Nov 29 (Reuters) - UK's benchmark FTSE 100 ended flat on Friday amid low trading volumes, as gains in mining shares countered weakness in defence stocks, while the stock index logged its first monthly gain in three.

The FTSE 100 .FTSE was largely unchanged at 8,287.3 points, while the domestically focused midcap FTSE 250 .FTMC also held its ground at 20,771.57. Trading volumes were lighter than usual, with the U.S. equity market open for half a day following Thursday's Thanksgiving holiday.

Both indexes registered their biggest monthly gains since July, with automobiles .FTNMX401010 and personal goods .FTNMX402040 emerging as the top sectoral performers in November.

This month, global financial markets were rattled by fears of trade tariffs proposed by U.S. President-elect Donald Trump and heightened geopolitical tensions that drove investors to safe-haven assets.

Meanwhile, the Bank of England warned higher trade barriers could affect global growth and feed inflation uncertainties, potentially causing financial market volatility.

All eyes are on major central bank policy decisions next month, especially the BoE that is widely expected to hold rates. The Federal Reserve and European Central Bank are expected to lower their policy rates.

Among top moving stocks, Anglo American AAL.L rose 5.4% following a Jefferies rating upgrade to "buy" from "hold", boosting industrial metal miners .FTNMX551020.

The aerospace and defence sector .FTNMX502010 fell 0.9%, as shares of BAE Systems BAES.L and Qinetiq QQ.L dropped 4.9% and 3.5%, respectively, after BofA Global Research downgraded the defence stocks.

Among others, London-listed Georgian banks TBC Bank TBCG.L and Bank of Georgia BGEO.L dropped 5.9% and 6.2%, respectively, as the Georgian government is set to suspend talks on European Union accession and refuse budgetary grants until 2028.

Spire Healthcare SPI.L climbed 2.7% following a media report that India's Narayana Health NARY.NS is in advanced talks to acquire a controlling stake in the company.

Direct Line DLGD.L rose 4.6%, adding to Thursday's surge, after a report said Aviva AV.L contacted the insurer's investors, possibly paving the way for a hostile takeover.

(Reporting by Ankika Biswas in Bengaluru; Editing by Tasim Zahid and Rod Nickel)

((Ankika.Biswas@thomsonreuters.com;))

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