London Shares Lifted by China Stimulus, Miners and Luxury Names Surge

24 September 2025

On September 24, 2024, London’s markets caught a wave of optimism as global sentiment awoke to stimulus measures out of Beijing. China’s newly announced cuts in interest rates and moves to revive its stock markets rippled across financial centers, prompting investors to revisit their exposure to commodity and luxury sectors. The FTSE 100 climbed roughly 0.5 percent and the FTSE 250 added about 0.3 percent in early trading as miners and luxury retailers led the rally.

Industrial miners listed in London jumped nearly 5 percent to reach their strongest levels in a month. Anglo American, Antofagasta and Glencore were among the top performers, each recording gains between 4.5 percent and 5.8 percent. The belief is that stimulus will revive Chinese demand for raw materials, and London markets, which often lean heavily on natural resource names, responded accordingly.

Luxury brands also rode the positive tide. Burberry was a standout, climbing 3.7 percent, reflecting hopes that Chinese consumer demand might be rekindled. The connection between Chinese consumer strength and luxury spending is a well known conduit in global markets. Yet not every stock joined the parade. Engineering firm Smiths Group dropped 6.3 percent after revealing modest profit metrics and acquisitions in North America. Dunelm, the homeware retailer, fell 6 percent after a key shareholder offloaded a near 5 percent stake.

Amid all this, Bank of England Governor Andrew Bailey chimed in with guarded optimism. He expressed that inflation appeared to be on a downward trajectory, hinting that interest rates may gradually ease in the months ahead. His remarks come at a delicate time: markets hope for looser monetary conditions, but central banks must balance that against inflation, growth, and financial stability concerns.

China’s stimulus package was substantial. The central bank outlined measures to lower borrowing costs, ease mortgage burdens, and support capital markets. It also cut reserve requirement ratios, injecting liquidity into financial institutions. The aim is to shake free tailwinds that have slowed economic momentum in recent quarters.

Globally, the news bolstered market sentiment. In New York, the Dow and S&P 500 closed at record highs as mining names strengthened. U.S. copper prices hit a ten-week peak. The yuan appreciated to a 16-month high against the dollar, an indicator that currency markets were factoring in the stimulus narrative.

The move suggests a deeper shift in investor psychology: instead of punting only on domestic signals, markets are beginning to price in cross-border policy impulses more readily. For London, a city with heavy exposure to resource sectors and links to Asian trade, the China stimulus provided a welcome spark.

Still, analysts caution that stimulus alone may not be enough to reverse structural headwinds. China’s property sector, corporate debt burdens, and weak credit demand are deep challenges. The stimulus may offer short‐term buoyancy, but sustainable growth likely requires broader fiscal support and structural reforms.

For London equities the challenge ahead is reconciling sunshine from global stimulus with domestic variables. Inflation, rate policy, consumer demand, and geopolitics all remain front of mind. Markets may test whether the gains on this day carry into lasting momentum or fade as policy details roll out.