As it happened: US stocks make gains ahead of Trump-Xi summit
Welcome back to City AM’s FTSE 100 liveblog.
The UK’s blue-chip index made gains on Monday morning, turning a corner from heavy losses on Friday.
Miners and industrial stocks like Anglo American, Antofagasta and Metlen Energy and Metals were among the FTSE 100’s biggest risers on Monday morning. BP and Shell dragged on the index, as falling oil prices prompted a sell-off of the energy giants.
Brent crude – the international benchmark for oil prices – fell by more than two per cent, dipping under $102 per barrel. The commodity remains near its highest level since May but receding fears over Saudi Arabian supplies and hopes that Donald Trump could meet with Iran’s President this week have began to push it down.
Richard Hunter, Interactive Investor’s head of markets, said: “After a torrid end to the week, the FTSE 100 regained some poise in early trade, although insufficient to erase those losses.
“BP and Shell provided a small headwind as they followed the oil price slightly lower, although this was offset as a higher copper price underpinned the likes of Antofagasta. A broker upgrade pushed tech safety firm Halma higher by more than two per cent, while more broadly the strength of the tech trade was reflected by a rise for Polar Capital after the Nasdaq had swum against the tide in the US.”
This week, investors will also be contending with the fear that UK borrowing costs could surge again after hitting their highest levels since 2007 in recent weeks. Chancellor John Healey has been dealt a fresh warning by consultancy firm KPMG, which said that a surge in bond yields and sluggish growth has halved his fiscal headroom.
“With the Government committed to not increasing taxes on working people, the Chancellor may need to consider other tax measures,” KPMG said.
We will be bringing you all the latest market updates and analysis.
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