UK's FTSE 100 rises as oil stocks gain; key announcements in focus
- The blue-chip FTSE 100 index rose 0.55% to 10,708.76 points
London’s FTSE 100 index rose on Monday, as investors flocked to defensive sectors such as healthcare and consumer staples, with oil prices and bond yields resuming their advance in a week packed with central bank decisions.
The blue-chip FTSE 100 index rose 0.55% to 10,708.76 points by 0959 GMT. The midcap FTSE 250 slipped 0.4% to 23,878.45, its lowest intraday level in more than a month.
Oil prices rose about 3%, after new strikes on Saudi Arabian infrastructure and Gulf shipping. Oil majors Shell and BP gained about 1.1% respectively, with energy stocks up 1.1%.
They outperformed peers last week, helping limit declines on the FTSE 100, which registered its biggest weekly fall in over a month.
British government bond yields ground higher once again on Monday, hitting new multi-year highs across maturities.
Investors flocked to sectors considered traditionally defensive. Pharma stocks rose 2.7%, with GSK rising 3.7% after it announced positive results for two lung cancer drugs - Jideytro and Ris-Rez.
Consumer-facing personal care, drug and grocery and beverages sectors added 2.6% and 2.8% respectively.
Meanwhile, CEOs of top AI labs including OpenAI and Anthropic called for slower development of the technology, hammering AI-linked stocks globally.
Futures tied to the tech-heavy U.S. Nasdaq slipped 1.8%. However, the FTSE 350 tech sector was up 3.9%.
Industrial and precious metal miners were the biggest percentage losers as metal prices slid.
This week, investors will watch employment and inflation reports in the UK, ahead of the Bank of England’s interest rate decision, where it widely expected to hold rates.
The U.S. Federal Reserve will announce its decision on Wednesday, with markets pricing in a 88.5% chance of a 25-basis-point hike, per CME’s FedWatch Tool.
Prime Minister Andy Burnham is set to meet executives from banks, oil majors, and a telecom firm, to discuss his economic growth plans on Monday.
GlobalData bottomed the FTSE 250 with a 22% slide. The data analytics and consulting company expects its annual revenue growth to be more muted than expected.
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