London stocks inched higher on Monday amid broad gains, after rounding off a turbulent week with declines, while resources-linked stocks and strength in BT Group provided further support.
The blue-chip FTSE 100 index was up 0.7%, while the mid-cap FTSE 250 index was up 0.3% by 0711 GMT, after ending with a second consecutive week of declines on Friday.
Most sub-sectors were trading upwards, with personal goods rising 1.5% and leading gains, pulled up by a 1.6% gain in top player Burberry.
Energy shares gained 1% as oil prices rose for the fifth straight session on easing US recession fears and geopolitical tensions in the Middle East.
Precious metal miners climbed 1.2% as gold prices edged higher.
Construction and materials were the only exception, falling 0.4% weighed down by landscaping and roofing products supplier Marshalls that fell 3.5% after a 19% slump in its half-yearly profit.
FTSE 100 falls over 1pc amid global stock slump
On the data front, investors are awaiting the US consumer price index data due on Wednesday to gauge the Federal Reserve’s stance on interest rate cuts in September.
Reports showing a weak US labour market stoked recession fears in the world’s largest economy and partly triggered an equity selloff last week.
However, a jobs data reading later in the week suggested that the concerns were overblown, helping sentiment recover amid a volatile week.
Also due this week are inflation figures and gross domestic product data out of the UK, as investors anticipate the Bank of England’s next rate cut.
Among individual stocks, BT Group jumped 6.3% after India’s Bharti Enterprises said it would acquire a 24.5% stake in the telecom giant for about 3.2 billion pounds ($4 billion), buying out its top shareholder.
The stock topped the FTSE 100 index.
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