FTSE finishes higher as rising crude prices lift oil majors
London’s top flight closed 11.92 points, or 0.17%, lower at 7,063.4 on Monday.
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Your support makes all the difference.The FTSE 100 held onto its gains on Monday despite weakening sentiment as it benefited from a strong session for oil majors.
Fuel supply concerns in the UK drew barely a response from traders who banked on the likes of BP and Royal Dutch Shell as crude continued its recent rally in value.
London’s top flight closed 11.92 points, or 0.17%, higher at 7,063.4 on Monday.
The price of oil broke above the highs last seen in July as the energy market also saw natural gas prices jump even further.
Brent crude increased by 1.58% to 79.32 dollars per barrel.
Michael Hewson, chief market analyst at CMC Markets UK, said: “After starting the day in a very positive fashion, momentum for markets in Europe has tailed off, as investors look ahead to months of protracted negotiations for a new German government.
“The FTSE100 appears to be lagging behind the rest of Europe’s markets although the DAX isn’t doing that much better.
“A decent performance from the likes of BP and Royal Dutch Shell is helping support the UK index, as energy prices continue to drive higher, with Brent crude prices now pushing up towards 80 dollars a barrel.”
Elsewhere in Europe, the other major markets were more robust than London despite uncertainty over the formation of Germany’s next government following Sunday’s election.
The German Dax increased by 0.27% and the French Cac moved 0.19% higher.
In the US, the Nasdaq and S&P 500 were major drags as rising bond yields impacted upon sentiment.
Tech stocks, such as Apple and Microsoft, had also been impacted by reports that China has closed some of its factories in a bid to conserve power.
Reports that China has closed some of its factories in order to conserve power appears to be weighing on the tech sector, with Apple shares sliding back, and Microsoft also underperforming
The pound was up 0.04% versus the US dollar at 1.371 and was flat against the euro at 1.171.
In company news, Rolls-Royce soared after it agreed to sell its Spanish ITP Aero business for 1.7 billion euros (£1.5 billion) to a consortium led by private equity giant Bain in the latest move of its major disposal programme.
The engineering giant said the deal, which is expected to complete in the first half of 2022, will be used to strengthen the firm’s balance sheet.
Shares in Rolls-Royce jumped by 14.98p to 147.48p at the close of play.
Elsewhere, Revolution Beauty shares lifted after its hailed strong growth in the six months to the end of August as bosses said revenues rose 35% to £78 million compared with the same period a year ago.
The retailer saw shares rise by 5.75p to 153.5p.
Shares in Cineworld also saw a strong bounce a day ahead of the latest James Bond premiere, amid anticipation that the release of No Time to Die will help drive more people into their theatres.
The leisure firm was 8.5p higher at 80.02p.
The biggest risers on the FTSE 100 were Rolls-Royce, up 14.98p at 147.48p, IAG, up 10.5p at 186.1p, Royal Dutch Shell, up 68.4p at 1,597.6p, and Royal Dutch Shell, up 66.6p at 1,595p.
The biggest fallers of the day were Experian, down 143p at 3,138p, Halma, down 128p at 2,918p, Croda, down 354p at 8,486p, and Spirax-Sarco, down 635p at 15,365p.