London close: Stocks mixed ahead of central bank decisions
By Josh White
Date: Monday 15 Sep 2025
(Sharecast News) - London stocks ended mixed on Monday as investors adopted a cautious stance ahead of a series of major central bank policy decisions due later this week.
The FTSE 100 slipped 0.07% to close at 9,277.03, while the more domestically focused FTSE 250 edged up 0.1% to 21,646.59.
In currency markets, sterling strengthened, rising 0.3% against the dollar to $1.3596 and gaining 0.03% on the euro to trade at €1.1561.
AJ Bell investment director Russ Mould said "the FTSE 100 was flat at the start of what could be a crunch week for financial markets," noting that "later this week the Bank of England and US Federal Reserve are set to announce their latest decision on interest rates.
"Most of the recent progress made by US stocks has been founded on an expectation that a US rate cut is coming on Wednesday, but UK rates are expected to remain unchanged."
Patrick Munnelly, market strategy partner at TickMill, noted that "mining company shares are struggling due to recent data indicating a decline in China's industrial output for August.
"Investors are looking forward to significant policy announcements from both the Federal Reserve and the Bank of England later this week.
"The Bank of England is anticipated to maintain current interest rates, while the U.S. Federal Reserve is generally expected to reduce its interest rate by 25 basis points, or possibly more."
UK manufacturing activity rebounds, house prices rise
In economic news, UK manufacturing activity rebounded sharply in the third quarter, according to a Make UK and BDO survey, though the sector was still expected to face challenging conditions ahead.
The Make UK/BDO Q3 Manufacturing Outlook report showed the net balance on output rose to +25% from +9% in the previous quarter, while orders climbed to +16% from -2%.
Both export and domestic orders improved notably, with Make UK pointing to signs of pent-up investment demand being released and rising recruitment intentions.
However, it warned that growth prospects remain subdued, with output forecast to contract 0.1% in 2025 and 0.6% in 2026, partly due to 46,000 unfilled vacancies costing an estimated £4bn in lost output annually.
Make UK chief executive Stephen Phipson said the figures were "an encouraging sign that manufacturers' confidence is improving and, more importantly, being translated into growth and investment," but cautioned that "with UK and European markets in particular remaining anaemic it wouldn't take much to knock prospects for further growth."
House prices in the UK meanwhile rose for the first time since May as buyer affordability improved, according to Rightmove's September house price index.
The average asking price increased 0.4% month-on-month to £370,257, recovering from a 1.3% drop in August, though prices were down 0.1% on the year, driven by weakness in London and the South.
The number of homes for sale in southern England rose 9% in September compared with a 2% rise elsewhere, while agreed sales were up 4% year-on-year.
Rightmove's Colleen Babcock said: "Static house prices, rising wages and lower mortgage rates all assist buyer affordability, which has led to an increase in the number of sales agreed compared to a year ago."
The Bank of England, which has cut rates three times this year to 4%, will announce its next policy decision later this week, with analysts widely expecting it to hold rates steady as it balances sluggish growth with persistent inflation.
Across the Atlantic, business activity in New York State's manufacturing sector contracted for the first time since June, the New York Federal Reserve reported.
Its Empire State Manufacturing Survey's headline index plunged 21 points to -8.7 in September from 11.9 in August, missing forecasts for 5.0.
New orders sank 35 points to -19.6, and shipments fell 30 points to -17.3, both their lowest since April 2024.
Employment was broadly unchanged after three months of gains.
"Manufacturing activity declined modestly in New York State in September," said Richard Deitz, economic research adviser at the New York Fed, adding that "optimism about the outlook remained muted and employment levels are expected to be flat over the next six months."
Elsewhere, China reported a trio of weaker-than-expected economic indicators, fuelling expectations of further stimulus measures from Beijing.
Industrial production growth slowed to 5.2% year-on-year in August from 5.7% in July, missing the 5.8% forecast and marking its weakest pace in a year.
Retail sales grew 3.4% to CNY 3,967bn, the slowest in nine months, while fixed asset investment rose just 0.5% in the year to August, down from 1.6% in July and well below expectations of 1.4%, dragged by a 12.9% fall in property investment.
Kathleen Brooks, research director at XTB, said the data pointed to a "broad economic slowdown" but noted it was "unlikely to deter another leg higher for stocks, since it could spur the Chinese government on to add more stimulus to prop up the economy, which is risk positive."
Sainsbury's rises as Argos sales talks collapse, AstraZeneca in the red
On London's equity markets, J Sainsbury rose 3.45% after confirming that talks with China's JD.com over the potential sale of Argos had collapsed.
Munnelly noted the stock reached its highest point in over four years.
"On Sunday, the supermarket chain announced that it had terminated negotiations with JD.com regarding the sale of its Argos general merchandise retailer.
"The company stated, 'JD.com has indicated that it would only be willing to proceed under significantly altered terms and commitments that would not serve the best interests of Sainsbury's shareholders, employees, and wider stakeholders.'
"SBRY has risen nearly 15% year-to-date."
Centrica gained 4.08% after signing a major agreement with US-based X-energy to build modular nuclear reactors in the UK, lifting sentiment around its long-term growth prospects.
Mould said that "during the energy crisis which followed Russia's invasion of Ukraine, Centrica saw big increases in profit and cash flow from higher prices, which supported a substantial advance in its share price.
"But questions could be asked of the British Gas owner's long-term strategy and how it might continue to prosper when market conditions are not so helpful.
"In this context, news of its involvement in a US-UK venture to create a 'golden age' of nuclear in this country are positive.
"However, it is telling that the first US SMR deployment project - the Carbon Free Power Project - was cancelled less than two years ago due to rising costs.
"Investors will likely have to be patient as they wait for this venture to make a significant contribution to Centrica's top and bottom line."
AO World surged 14.03% as the electricals retailer raised the lower end of its full-year earnings guidance and announced its first-ever share buyback.
"AO World shares increased by 10.3% to 92p, leading the FTSE midcap index," said Munnelly.
"The company has raised its fiscal year adjusted profit before tax forecast to between £45m and £50m pounds, up from the previous estimate of £40m to £50m pounds.
"Additionally, it announced its first-ever share buyback program of up to £10m."
On the downside, AstraZeneca slumped 3.22% after pausing plans to invest £200m at its Cambridge research site.
Richard Hunter, head of markets at Interactive Investor, said that was "hot on the heels of other pharmaceutical strategic withdrawals given the perceived lack of interest from the government," adding that while shares are still up 21% this year, the move could add to speculation it might shift its primary listing to the US.
BT Group slipped 1.9% after announcing that Bharti Global representatives Sunil Bharti Mittal and Gopal Vittal have joined its board as non-executive directors.
Reporting by Josh White for Sharecast.com.
Market Movers
FTSE 100 (UKX) 9,277.03 -0.07%
FTSE 250 (MCX) 21,646.59 0.10%
techMARK (TASX) 5,424.19 -0.61%
FTSE 100 - Risers
Centrica (CNA) 166.90p 4.08%
Sainsbury (J) (SBRY) 317.80p 3.45%
SEGRO (SGRO) 630.60p 3.38%
Marks & Spencer Group (MKS) 347.20p 2.66%
Antofagasta (ANTO) 2,281.00p 2.29%
Lloyds Banking Group (LLOY) 84.46p 2.25%
Beazley (BEZ) 830.00p 1.90%
ICG (ICG) 2,292.00p 1.87%
Fresnillo (FRES) 2,196.00p 1.86%
JD Sports Fashion (JD.) 92.18p 1.83%
FTSE 100 - Fallers
AstraZeneca (AZN) 11,414.00p -3.22%
Airtel Africa (AAF) 223.80p -2.01%
BT Group (BT.A) 201.80p -1.90%
GSK (GSK) 1,479.00p -1.63%
Convatec Group (CTEC) 232.20p -1.61%
Hikma Pharmaceuticals (HIK) 1,607.00p -1.53%
Bunzl (BNZL) 2,458.00p -1.52%
Haleon (HLN) 356.70p -1.44%
Smith & Nephew (SN.) 1,385.00p -1.42%
InterContinental Hotels Group (IHG) 8,780.00p -1.22%
FTSE 250 - Risers
AO World (AO.) 95.10p 14.03%
Frasers Group (FRAS) 715.00p 3.40%
Vistry Group (VTY) 608.00p 3.19%
Tritax Big Box Reit (BBOX) 139.80p 3.17%
Endeavour Mining (EDV) 2,894.00p 2.70%
Wetherspoon (J.D.) (JDW) 707.00p 2.69%
Computacenter (CCC) 2,370.00p 2.69%
Mitchells & Butlers (MAB) 268.50p 2.68%
TBC Bank Group (TBCG) 4,550.00p 2.48%
Pantheon Infrastructure (PINT) 106.00p 2.42%
FTSE 250 - Fallers
Bloomsbury Publishing (BMY) 484.50p -4.81%
Carnival (CCL) 2,059.00p -4.37%
Ocado Group (OCDO) 233.70p -4.16%
Genus (GNS) 2,520.00p -3.82%
Ithaca Energy (ITH) 185.20p -3.44%
Playtech (PTEC) 370.50p -3.39%
Plus500 Ltd (DI) (PLUS) 3,070.00p -3.09%
Burberry Group (BRBY) 1,072.00p -2.99%
Diversified Energy Company (DEC) 1,131.00p -2.92%
Foresight Solar Fund Limited (FSFL) 79.00p -2.47%
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