The FTSE 100 struggled for direction on Monday, closing just 1 point higher at 10,498.29 as rising oil prices and renewed Middle East tensions offset weakness in technology and precious metal stocks.
The FTSE 250 gained 25.17 points, or 0.1%, to 23,396.58, while the AIM All-Share fell 0.4% to 761.14.
Brent crude for September delivery rose to US$79.42 a barrel from US$75.86 on Friday as hostilities between the US and Iran continued.
US President Donald Trump said the Strait of Hormuz remained open and announced plans to charge cargo passing through the key shipping route to help cover US security costs.
Oil majors benefited from the higher crude price, with BP rising 4.6% and Shell gaining 2.3%.
Shell also announced the US$1.8 billion sale of Solenergi Power, which includes the Sprng Energy group of companies, to Aditya Birla Renewables.
Wall Street was weaker, however, with the Dow Jones down 0.2%, the S&P 500 falling 0.4% and the Nasdaq Composite declining 0.8%. Technology shares remained volatile following heavy losses in Asia, where South Korea’s Kospi plunged 9%.
Back in London, housebuilders advanced after reports that incoming prime minister Andy Burnham is considering reviving the Help to Buy scheme. Persimmon rose 2.9%, Barratt Redrow gained 1.5% and Taylor Wimpey climbed 2.1%.
Recruiters were among the strongest FTSE 250 performers. PageGroup surged 20% after reporting a better-than-expected second quarter, with gross profit rising 1.3% to £197.6 million.
Hays gained a further 14% following its upbeat trading update on Friday. Watches of Switzerland rose 4.2% following reports that the luxury watch retailer has held talks over potential takeover approaches.
ME Group International advanced 9.3% after saying trading had returned to more normal seasonal patterns, while Oxford Nanopore fell 3.6% after warning that first-half revenue would miss forecasts.
The biggest FTSE 100 risers were Vodafone, BP, Pearson, BT Group and Airtel Africa. The biggest fallers were Fresnillo, IG Group, Scottish Mortgage Investment Trust, International Consolidated Airlines and Endeavour Mining.
Tuesday’s economic calendar includes US inflation figures, UK retail sales data from the British Retail Consortium and trade figures from China.
Robert Walters and Watches of Switzerland are among the UK companies scheduled to issue trading updates.
