The FTSE 100 takes a breather

The London stock market opened in the red on Monday, with the FTSE 100 index down 0.3%, after a strong week. On Friday, the index gained 0.7% and for the week, it jumped 2.7%, after Bank of England Governor Andrew Bailey hinted at potential rate cuts this year, as the risk of a wage-price spiral seems to be diminishing.

The U.S. Federal Reserve also left rates unchanged, but projections indicate that three rate cuts could occur this year.

Kingfisher, the owner of B&Q and Screwfix, warned that its profit for the current year would fall short of expectations after a 25% drop in 2023-24. Sales dropped 0.6% to GBP12.98 billion. The company expects an adjusted pretax profit for the new year in the range of GBP490 million to GBP550 million, which could represent a 14% decrease from the previous year.

AstraZeneca's stock fell slightly after the FDA approved its Ultomiris treatment for a rare autoimmune disease.

Mobico, formerly known as National Express, lowered its earnings guidance and delayed its 2023 results due to accounting issues in its German rail business, resulting in a 7.5% drop in shares.

In other news, Goldman Sachs raised its 2024 target for the UK's FTSE 100 index to 8,200 from 7,900, reflecting a positive outlook for the market.

Things to read today:

• The economist who says the Fed won't cut rates this year (Financial Times).
• ESG may never recover (Wall Street Journal).
• The hotel guest who wouldn't leave (New York Times).