Oil Eases, UK FTSE 100 Steadies After Worst Week Since April
The UK's FTSE 100 rose on Monday, steadying after its steepest drop since April last week, as prospects of higher crude supplies kept prices in check.
The blue-chip FTSE 100 index closed 0.34% higher at 10,497.94 points. The midcap FTSE 250 dipped 0.29% to 24,123.75 points.
Brent crude futures LCOc1dipped 0.44% to $101.83 a barrel, after exports from the Middle East increased and the Group of Seven nations pledged to boost supplies
Still, the conflict between Yemen's internationally recognised government and Iran-backed Houthis kept investors on edge
A survey on Monday showed British services firms reported stronger cost pressures last month as fuel prices surged due to the Middle East conflict
Fuel prices have been under scrutiny owing to their impact on inflation expectations and the Bank of England's interest rate trajectory
"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 see a nearly 97% chance of a rate hike at the next central bank meeting in November, according to data compiled by LSEG
Metals and mining shares rose 1.65% as copper prices rose for a second straight day
Ithaca Energy rose 2.2% and was among top gainers on the FTSE 100 after it agreed to acquire Suncor Energy's offshore oil assets for $842 million in upfront cash
"This deal for Canadian assets provides a level of diversification," said AJ Bell investment director Russ Mould
BT Group rose 1.4% after it agreed to buy troubled broadband provider TalkTalk for £400 million ($530 million) in a government-backed rescue deal
(Reuters)
