UK Stocks Brace for Volatile Day Amid Oil Price Spikes and Rate Hike Fears

The UK stock market is bracing for a volatile day on September 15 as concerns about sharp spikes in oil prices, bond yields, and geopolitical risks continue to weigh on investor sentiment. The FTSE 100 ended higher by 0.4% at 10,697.57, supported by defensive stocks like healthcare and consumer goods.

The price of Brent crude has surged to approximately $107 per barrel, after gaining more than 1% amid fears of shortages of energy supplies due to the attack on Saudi oil facilities and ongoing tensions in the Middle East region.

This sharp rise in oil prices may put pressure on global stocks, but there could be a positive impact on the FTSE 100 index from energy and commodity-related stocks due to rising oil and metal prices. However, these stocks may suffer from negative investor sentiment towards consumer and economic-sensitive companies due to growing fears of inflation and rising interest rates.

The Bank of England's interest rate decision on Thursday is also a key market-moving event this week, with the probability of a quarter percentage point rate rise assessed at about a one in three. The UK labour market data revealed that vacancies fell to 702,000 - four-year low, and unemployment stood unchanged at 4.9%.