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 index closed 0.34% higher at 10,497.94 points, while the midcap FTSE 250 dipped 0.29% to 24,123.75 points. The rise came as crude oil prices eased slightly due to increased exports from the Middle East and pledges from the Group of Seven to boost supplies. Brent crude futures dipped 0.44% to $101.83 a barrel.

Despite the easing of oil prices, tensions in the Middle East continued to weigh on investor sentiment. A conflict between Yemen's internationally recognized government and Iran-backed Houthis kept markets on edge. A survey on Monday revealed that British services firms reported stronger cost pressures last month due to surging fuel prices, raising concerns about inflation and the Bank of England's interest rate trajectory.

Economists at Pantheon Macroeconomics noted that energy prices have risen too sharply for the Monetary Policy Committee to remain inactive. Traders currently see a nearly 97% chance of a rate hike at the next central bank meeting in November. Meanwhile, metals and mining shares rose 1.65% as copper prices increased for a second straight day.

Ithaca Energy was among the top gainers on the FTSE 100, rising 2.2% after agreeing to acquire Suncor Energy's offshore oil assets for $842 million in upfront cash. The deal was seen as providing diversification for the company. BT Group also saw a 1.4% rise after agreeing to buy broadband provider TalkTalk for £400 million ($530 million) in a government-backed rescue deal.