UK's FTSE 100 steadies after worst week since April as miners gain

The UK’s FTSE 100 rose on Monday, steadying after its steepest drop since April last week, as mining shares led gains and oil prices stayed in check.

The blue-chip FTSE 100 index rose 0.19% to 10,481.20 points at 1018 GMT. The midcap FTSE 250 dipped 0.32% to 24,114.77 points.

Precious metal miners rose 0.55% as prices of spot gold and silver jumped 0.35% and 2.06%, respectively.

Brent crude futures dipped 0.19% to $102.04 a barrel in choppy trading, 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 95% chance of a rate hike at the next central bank meeting in November, according to data compiled by LSEG.

Ithaca Energy rose 3.5% and was the top gainer on the FTSE 100 after it agreed to acquire Suncor Energy’s offshore oil assets for $842 million in upfront cash.

“The industry has consistently bemoaned the tinkering in the fiscal and regulatory set-up for oil and gas in the UK and this deal for Canadian assets provides a level of diversification,” said AJ Bell investment director Russ Mould.

Investment firm 3i Group hit its lowest level since late June and was last down 4.4%.