The UK’s FTSE 100 experienced an uptick on Monday, stabilising following its most significant decline since April the previous week, with mining stocks driving the upward movement and oil prices remaining relatively stable.
The blue-chip FTSE 100 index rose 0.19% to 10,481.20 points at 1018. The midcap FTSE 250 dipped 0.32% to 24,114.77 points.
- Precious metal miners opened new tab rose 0.55% as prices of spot gold and silver jumped 0.35% and 2.06%, respectively.
- Brent crude futures experienced a decline of 0.19%, settling at $102.04 per barrel amid volatile trading conditions. This movement follows an uptick in exports from the Middle East and a commitment from the Group of Seven nations to enhance supply levels.
- Nevertheless, the ongoing conflict between Yemen’s internationally recognised government and the Iran-backed Houthis has maintained a state of unease among investors.
- A survey on Monday indicated that British services firms experienced heightened cost pressures in the previous month, attributed to a surge in fuel prices stemming from the Middle East conflict.
- Fuel prices have come under examination due to their influence on inflation expectations and the trajectory of interest rates set by the Bank of England.
- “Energy prices have risen too sharply, and a drop seems too distant a prospect for the MPC (Monetary Policy Committee) to sit on its hands and hope second-round effects fail to materialise,” economists at Pantheon Macroeconomics wrote.
- Traders currently perceive a nearly 95% probability of a rate hike at the forthcoming central bank meeting in November, based on data compiled by LSEG.
- Ithaca Energy rose 3.5% and was the top gainer on the FTSE 100 after it agreed to acquire Suncor Energy’s offshore oil assets for $842 million in upfront cash.
- “The industry has consistently bemoaned the tinkering in the fiscal and regulatory set-up for oil and gas in the UK and this deal for Canadian assets provides a level of diversification,” said Russ Mould.
- Investment firm 3i Group opens a new tab, hitting its lowest level since late June, and was last down 4.4%.
