London stocks opened slightly higher on Monday, the first trading day of the last quarter of the year, with defence firm BAE Systems jumping to the top of the large-cap index after winning a contract to build attack submarines.

BAE Systems added 2.2% after Britain awarded the defense firm a 4 billion pound ($4.9 billion) contract as part of the AUKUS programme with Australia and the United States to build attack submarines.

The broader aerospace and defence sector added 1%.

The internationally focused FTSE 100 inched up 0.1% by 0711 GMT amid holiday-thinned trade in some global markets including top-consumer China.

London stocks rise at open after bright GDP data

The more domestically focussed FTSE 250 added 0.6%.

Among other movers, Pennon Group added 4.0% and United Utilities added 2.3% after the water companies outlined their respective investment plans.

Meanwhile, domestic house prices in September were 5.3% lower than a year earlier, matching their fall in August which was the biggest annual drop since 2009, as per mortgage lender Nationwide.