London close: Stocks finish higher as gold prices surge

(Sharecast News) - London stocks closed higher on Tuesday as investors remained cautious ahead of key central bank decisions this week, including from the Bank of England and the Federal Reserve.

The FTSE 100 rose 0.29% to 8,705.23, while the FTSE 250 gained 0.35% to 20,097.77.

In currency markets, sterling edged up 0.04% against the dollar to $1.2997, while slipping 0.08% on the euro to �1.1883.

"The FTSE 100's recovery from a dip earlier this month continued with pace," said Russ Mould, investment director at AJ Bell.

"Investor risk appetite is tentatively returning, as evidenced by miners leading the charge and people buying the recent dip in retailers.

"However, investors aren't diving headfirst into the deep end."

Mould said they were taking things slowly, hence why banks and their reassuring dividends were also in demand.

"The fact gold hit another new record high also shows that investors are hedging their bets.

"They might be increasing equities exposure, but they're also adding a form of insurance to portfolios.

"Gold briefly hit $3,026, continuing a strong run for the precious metal amid a weakening dollar and concerns that Donald Trump's policies are going to cause economic havoc both in the US and abroad."

Gold prices reach fresh highs amid global stability jitters

In economic news, gold prices climbed to fresh highs on Tuesday as investors sought safety amid escalating geopolitical tensions and trade concerns.

The precious metal rose 1% to $3,030.80 per ounce, extending its year-to-date gain to 14%.

Heightened instability in the Middle East, alongside fears of a global trade war, fueled demand for gold as a safe-haven asset.

US president Donald Trump's trade policies have raised concerns about rising inflation and a potential recession, with recent tariffs prompting retaliatory measures from China and the European Union.

Meanwhile, Israel launched airstrikes on Gaza following renewed hostilities, while US forces struck Houthi targets in Yemen, further adding to market uncertainty.

In Germany, lawmakers approved a landmark fiscal reform package, paving the way for increased defence and infrastructure spending.

The Bundestag backed the measures with a decisive 513 votes in favor, surpassing the required two-thirds majority.

Chancellor-in-waiting Friedrich Merz emphasised the need for higher military expenditure in response to the growing threat from Russia.

His proposal, backed by the Social Democrats and Greens, could unlock up to �1trn in stimulus, including a �100m fund for environmental initiatives.

The move follows US pressure on Europe to boost defence spending amid Washington's shifting stance on Ukraine.

Investor sentiment in Germany surged in March, reaching its highest level in over two years, as confidence grew in the government's economic policies.

The ZEW Indicator of Economic Sentiment jumped 25.6 points to 51.6, exceeding expectations and marking its sharpest increase in over a year.

Meanwhile, the assessment of Germany's current economic situation showed little change, inching up to -87.6.

In the United States, industrial production rose sharply in February, driven by a rebound in automobile and aircraft manufacturing.

Total output increased 0.7% from the previous month, surpassing the 0.2% forecast.

Manufacturing output rose 0.9%, while mining activity jumped 2.8%.

However, utilities production fell 2.5%, and January's industrial growth was revised downward to 0.3% from an earlier estimate of 0.5%.

Capacity utilisation improved to 78.2%, with durable goods manufacturing, particularly in the automotive sector, leading the gains.

US housing starts surged in February, exceeding expectations as home construction rebounded strongly.

New residential construction jumped 11.2% to an annualized rate of 1.50 million units, up from 1.35 million in January.

Single-family home starts rose 11.4%, while multi-unit projects increased by 12.1%.

Strong gains across the Northeast, South, and West offset a decline in the Midwest.

Meanwhile, building permits, an indicator of future housing activity, edged down 1.2% to 1.46 million but remained slightly above analysts' forecasts.

Bytes surges on strong growth, Close Brothers slides

On London's equity markets, shares in Bytes Technology Group surged 17.13% after the company reported strong annual results, with double-digit growth across all key financial metrics.

Gross invoiced income exceeded �2 billion for the first time, boosting investor confidence in its expansion.

Computacenter jumped 10.13% as the IT services provider struck an optimistic tone on future prospects.

A strong second half helped annual profit slightly exceed expectations, despite economic uncertainty and weaker UK market conditions.

Growth in the US and Germany offset domestic challenges.

SThree climbed 5.74% after maintaining its full-year guidance, despite reporting double-digit declines in contract and permanent recruitment fees during the first quarter.

Investors welcomed the recruiter's resilience in a challenging hiring environment.

Among the biggest gainers, Anglo American rose 0.53% following an upgrade from RBC Capital Markets, which lifted its rating on the miner to "sector perform" from "underperform."

On the downside, Close Brothers Group plummeted 21.54% after swinging to a pre-tax loss of �103m in the first half, compared with an �88.1m profit a year earlier.

The decline was largely due to a �165m provision for motor finance commissions, which had already been anticipated but still weighed heavily on sentiment.

Trustpilot Group dropped 10.31%, reversing earlier gains, despite raising its full-year outlook for 2025.

Reporting by Josh White for Sharecast.com.

Market Movers

FTSE 100 (UKX) 8,705.23 0.29%

FTSE 250 (MCX) 20,097.77 0.35%

techMARK (TASX) 4,779.99 0.40%

FTSE 100 - Risers

JD Sports Fashion (JD.) 77.94p 4.56%

Standard Chartered (STAN) 1,206.00p 3.65%

NATWEST GROUP (NWG) 464.90p 3.61%

Marks & Spencer Group (MKS) 332.20p 3.59%

Airtel Africa (AAF) 159.40p 3.04%

Barclays (BARC) 303.65p 2.98%

IMI (IMI) 2,036.00p 2.88%

Antofagasta (ANTO) 1,946.50p 2.80%

Next (NXT) 9,826.00p 2.53%

St James's Place (STJ) 1,028.00p 2.29%

FTSE 100 - Fallers

Games Workshop Group (GAW) 14,240.00p -2.86%

The Sage Group (SGE) 1,170.00p -1.85%

Halma (HLMA) 2,644.00p -1.71%

Unilever (ULVR) 4,529.00p -1.46%

Rightmove (RMV) 677.20p -1.37%

Imperial Brands (IMB) 2,745.00p -1.33%

Relx plc (REL) 3,766.00p -1.26%

Mondi (MNDI) 1,249.50p -1.23%

Auto Trader Group (AUTO) 756.00p -1.21%

InterContinental Hotels Group (IHG) 8,528.00p -1.14%

FTSE 250 - Risers

Bytes Technology Group (BYIT) 488.20p 17.81%

Computacenter (CCC) 2,590.00p 10.97%

Ocado Group (OCDO) 258.70p 8.29%

Softcat (SCT) 1,623.00p 8.13%

SThree (STEM) 276.50p 5.74%

Lion Finance Group (BGEO) 5,760.00p 5.11%

Oxford Nanopore Technologies (ONT) 115.00p 4.55%

Wood Group (John) (WG.) 44.02p 4.51%

TBC Bank Group (TBCG) 4,500.00p 4.29%

Wizz Air Holdings (WIZZ) 1,776.00p 3.44%

FTSE 250 - Fallers

Trustpilot Group (TRST) 248.00p -10.31%

QinetiQ Group (QQ.) 395.40p -5.00%

Moonpig Group (MOON) 196.00p -4.39%

Bodycote (BOY) 578.00p -3.84%

Aston Martin Lagonda Global Holdings (AML) 78.35p -3.21%

Clarkson (CKN) 3,515.00p -2.50%

Bakkavor Group (BAKK) 160.00p -2.44%

Carnival (CCL) 1,399.00p -2.17%

International Workplace Group (IWG) 176.90p -2.16%

Elementis (ELM) 146.20p -2.14%