The FTSE 100 rose by 0.6% on Monday as falling oil prices lifted market sentiment amid ongoing conflict in the Middle East, according to Reuters.
Key Takeaways
The FTSE 100 rose by 0.6% on Monday as falling oil prices lifted market sentiment amid ongoing conflict in the Middle East. The energy sector saw gains despite weaker oil prices, while the pound remained near three-month lows.
- FTSE 100 index increased by 0.6%, led by financial and consumer staples sectors
- Oil prices eased around 1% after announcements on ship passages through Strait of Hormuz
- Energy sector rose by 1.3%, with BP and Shell seeing gains
- REIT sector advanced by 1.4%, with Segro and Hammerson rising significantly
- Pound up 0.2% against the dollar, but remained near three-month lows
The blue-chip index finished higher after starting the session steadily. Sentiment improved as oil prices turned negative for the day, easing around 1% following announcements that some Iranian, Indian, and Chinese ships would be allowed through the Strait of Hormuz. Talk of potential releases from emergency oil reserves by International Energy Agency member countries also helped ease concerns.
The energy sector rose by 1.3%, with major companies like BP and Shell seeing gains despite weaker oil prices. Financial and consumer staples sectors led the index higher, each rising over 1%. However, Britain's mid-cap index closed lower for the fourth consecutive session, down 0.2%.
The REIT sector advanced by 1.4%, with Segro and Hammerson rising significantly after being upgraded by Morgan Stanley. Investors are focusing on interest rate decisions in the UK, US, and Europe this week, with central banks expected to pause further rate cuts due to the conflict's impact.
The pound rose for the first time in a week but remained near three-month lows as uncertainty over global growth and inflation persisted. The Bank of England is widely expected to keep interest rates unchanged at 3.75%. Sterling was up 0.2% against the dollar, while UK jobs data later this week could shape expectations for longer-term BoE policy.
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