The UK’s blue-chip share index hovered near a two-week high on Monday, as energy stocks rose on the back of escalating tensions in the Middle East, although caution persisted ahead of policy outcomes from major central banks as well as earnings this week.
The FTSE 100 edged 0.1% higher by 0812 GMT, holding near its strongest level since Jan. 12, as shares of oil majors and Shell rose nearly 2%.
Crude prices climbed after a drone attack on U.S. forces in Jordan added to worries over supply disruption in the Middle East as Houthi rebels stepped up their attacks on vessels in the Red Sea.
The UK’s domestically oriented FTSE 250 dipped 0.4%.
Both the indexes notched their first weekly gain of the year on Friday, aided by upbeat earnings reports as well as hopes of more stimulus for China’s economy.
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Investors are awaiting policy decisions from the U.S. Federal Reserve and the Bank of England later this week, where policymakers are widely seen holding interest rates, although traders will closely watch any commentary on the potential for ate cuts.
Ryanair slipped 3.1% after the airline operator trimmed its profit forecast for the year ending March after some online travel agents stopped selling its flights in December, forcing it to cut fares to fill seats.
Other airlines including British Airways owner IAG, Wizz Air and EasyJet dipped in early deals.
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