Nov 25 (Reuters) - The UK's FTSE 100 touched a one-month closing high on Monday, joining a global rally fuelled by Scott Bessent's nomination as U.S. Treasury secretary, while Kingfisher slumped after the home improvement retailer issued a profit warning.
Kingfisher shares (KGF.L), tumbled 13.2%, the biggest decliner among the FTSE 100 components, after it warned of a 45 million pound ($57 million) hit to 2025/26 profit from tax raising measures in government budgets in both the UK and France.
"Kingfisher has a growth problem and until the backdrop radically improves, it is stuck in quicksand, slowing sinking," said Russ Mould, investment director at AJ Bell. "Consumer sentiment remains patchy and economic growth lacklustre, which suggests darker days ahead for Kingfisher."
The blue-chip FTSE 100 (.FTSE), however rose 0.4% to its strongest close since October 22.
Shares of heavyweight miners Glencore (GLEN.L), Anglo American (AAL.L), and Rio Tinto (RIO.L), rose between 1.3%-2.4% as copper prices rebounded.
In contrast, precious metal miners (.FTNMX551030), dropped 2%, tracking a 3% slump in gold prices, as President-elect Donald Trump's nomination of Bessent and reports of Israel nearing a ceasefire with Hezbollah dented its safe-haven appeal.
Energy stocks such as BP (BP.L), and Shell (SHEL.L), also dipped as crude prices retreated.
Meanwhile, Bank of England Deputy Governor Clare Lombardelli said she was more worried about the risk that inflation comes in higher - not lower - than the central bank has forecast as she made the case for only gradual reductions in interest rates.
She said recent downbeat business surveys suggested that inflation could cool while strong wage growth posed a threat in the opposite direction.
British households' disposable income fell in October and rising inflation may subdue spending this Christmas, supermarket group Asda said.
The midcap FTSE 250 index (.FTMC), advanced 0.8% to hit a near one-month closing peak.
Shares in ITV (ITV.L), jumped 8.6% after Sky News reported that the British broadcaster behind "I'm a Celebrity... Get Me Out of Here" and "Coronation Street" could be a takeover target for a team led by CVC Capital Partners.
Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D'Silva
