FTSE 100 recovers after worst week since April
The UK's FTSE 100 index rebounded on Monday, recovering from its worst weekly performance since April. The benchmark closed 0.34% higher at 10,497.94 points, while the midcap FTSE 250 dipped 0.29% to 24,123.75 points.
Market sentiment was influenced by a slight dip in Brent crude futures, which fell 0.44% to $101.83 a barrel. This decline followed increased exports from the Middle East and a pledge by the Group of Seven nations to boost oil supplies. However, tensions between Yemen's government and Iran-backed Houthis kept investors cautious.
A survey released on Monday revealed that British services firms faced stronger cost pressures last month due to surging fuel prices stemming from the Middle East conflict. Analysts at Pantheon Macroeconomics noted that the sharp rise in energy prices is likely to prompt the Bank of England's Monetary Policy Committee to raise interest rates in November, with traders assigning a 97% probability to this outcome.
Among individual stocks, metals and mining shares rose 1.65% as copper prices climbed for the second straight day. Ithaca Energy gained 2.2% after announcing the acquisition of Suncor Energy's offshore oil assets for $842 million. Meanwhile, BT Group advanced 1.4% following its agreement to purchase broadband provider TalkTalk for £400 million in a government-backed deal.