Investing.com -- U.K. stock markets traded higher Monday in cautious trading, as investors await the restart of negotiations aimed at raising the U.S. debt ceiling, while NatWest benefits from a state stake reduction.
At 04:15 ET (08:15 GMT), the benchmark FTSE 100 index traded 0.3% higher, the mid-cap FTSE 250 traded up 0.1% and the combined FTSE 350 rose 0.3%.
Investors in the U.K., as well as around the world, are keenly following the toing and froing surrounding the negotiations to lift the U.S. debt ceiling, with U.S. President Joe Biden and House Republican Speaker Kevin McCarthy set to meet later today to restart talks after the Republican negotiators unexpectedly walked out of talks on Friday.
U.S. Treasury Secretary Janet Yellen has stated that June 1 is the deadline for a deal to be done before the U.S. runs the risk of defaulting on its debt obligations, an event that could have severe repercussions on the global economy.
Back in the U.K., Prime Minister Rishi Sunak has returned from the G7 summit in Japan with his own political difficulties, as Home Secretary Suella Braverman is under pressure over her handling of a speeding ticket last year.
Turning to the corporate sector, NatWest (LON:NWG) stock rose 0.9% after the partially state-owned bank announced plans to buy £1.3 billion (£1 = $1.2433) worth of its shares back from the government, reducing the state’s stake to 38.69% from around 41.4%.
The state owned 84% of NatWest at the peak of its ownership after it bailed out the bank in the global financial crisis in 2008.
"Today's sale is another major milestone in returning NatWest to full private ownership as promised," Andrew Griffith, economic secretary to the Treasury, said in a statement.
Low-cost airline Ryanair (LON:0RYA) posted a near-record net profit for fiscal 2023 of €1.4 billion (€1 = $1.0804) on Monday and predicted strong summer demand as it recovers quickly from the pandemic, with passengers hunting for bargain holidays in the sun.
Burberry (LON:BRBY) stock rose 3.6%, continuing the positive tone generated by last week’s solid full-year results.
The luxury brand has also been helped by U.S. President Joe Biden saying earlier Monday that the G7 had agreed on a united approach to China, a major market for Burberry, and that he expected a thaw in relations with the country “very shortly".