The FTSE 100 closed higher on Monday, outperforming its major European counterparts as falling oil prices and easing bond yields helped support London equities.
The blue-chip index gained 37.76 points, or 0.4%, to 10,854.32, extending Friday’s advance. The FTSE 250 was virtually unchanged at 24,717.48, while the AIM All-Share added 0.3% to 814.04.
London’s gains contrasted with weaker European markets, where France’s CAC 40 fell 0.4% and Germany’s DAX 40 declined 0.1%.
Oil prices slipped despite increasingly forceful rhetoric from Washington over Iran. Brent crude traded around $92.74 a barrel, down from $93.53 on Friday, after US Treasury Secretary Scott Bessent declared the beginning of an “economic D-Day” against Tehran.
Bond markets were also somewhat calmer, with the US 10-year Treasury yield easing to 4.70% from 4.74% and the 30-year yield falling to 5.23%.
Gold continued its recent rally, climbing to $4,670.28 an ounce, compared with $4,605.34 on Friday.
Among individual FTSE 100 stocks, Diageo led the risers with a 3.0% gain after RBC Capital Markets reiterated its ‘outperform’ rating and 2,000p price target. London Stock Exchange Group, Airtel Africa, Pearson and Weir were also among the strongest performers.
BP headed the fallers, declining as weaker crude prices weighed on the oil major.
Attention now turns firmly towards the US, with Nvidia’s results, PCE inflation data and Federal Reserve Chair Kevin Warsh’s first Jackson Hole address among the week’s major potential market catalysts.
