FTSE 100 close: London dips as oil prices fall on easing Gaza tensions as bond yields rise
London’s FTSE indexes closed lower on Monday with little to change the mood after last week’s rout in markets.
The blue-chip FTSE 100 closed 0.37 per cent lower at 7,374.83 although the mid-cap FTSE 250 climbed 0.15 per cent to 17,058.99.
Despite the markets falling, traders were cautiously optimistic that the conflict in Gaza would not escalate further after a tense weekend. Reflecting these hopes, oil prices were down by more than $1 as supply concerns eased.
CMC Markets analyst Michael Hewson said: “Events over the weekend have offered some hope of compromise with the release of two Israeli hostages, and the start of some aid convoys into Gaza, prompting some modest weakness in crude oil and gold prices, however the exchange of fire between Israel and Hamas has continued, while the prospect of a new front on the Lebanese border remains an ever-rising concern as Israeli forces exchange fire with Hezbollah.”
Markets were also concerned by the rise in bond yields, with yields on US government debt hitting its highest level since 2007.
Beyond the Gaza conflict, investors have a busy week of corporate results to look forward to with results from both the Big Tech firms and the UK’s banking giants.
“It’s a huge week for earnings on Wall Street with around a third of the Dow Jones industrial average reporting Q3 numbers, whilst Big Tech gets an outing with Microsoft, Meta, Alphabet and Amazon due to report,” Finalto’s Neil Wilson said.
On the FTSE 100 natural resource companies, ended lower – weighed down by lower prices for raw materials.
Fresnillo was down 4.7 per cent, Endeavour 2.4 per cent and Antofagasta 2.0 per cent. Glencore was also down 1.5 per cent.
FTSE 250-listed Vistry warned of slowing demand for houses. “We have not seen the seasonal increase in private sales since September that we had expected,” the firm said.
Its shares were down nearly six per cent.
“Housebuilder Vistry Group was the day’s big loser on the latter, further cementing concerns about the state of the UK housing market and setting up tomorrow’s jobs data with cuts to its workforce,” Danni Hewson, AJ Bell’s head of financial analysis said.