The FTSE 100 opened 38.87 points, or 0.36%, higher at 10,747.20 on Wednesday, rebounding from Tuesday’s close of 10,708.33.
The index traded between 10,742.37 and 10,765.19 in early dealings, showing that the opening advance was being largely maintained.
The main market impact came from Brent crude trading below $99 a barrel, which reduced inflation concerns and improved the outlook for companies exposed to fuel and transport costs.
That creates a clear sector split: airlines, retailers and other consumer-facing businesses may benefit from lower energy costs, while heavyweight oil producers such as BP and Shell could come under pressure from weaker crude prices.
Because BP and Shell carry significant weight in the FTSE 100, weakness in the oil majors could limit the index’s overall advance even if broader market sentiment improves.
The early move therefore points to a rotation within the market rather than a simple risk-on rally, with investors potentially favouring travel, consumer and other fuel-sensitive shares over energy producers.
Attention now turns to UK and international flash PMI data, which could determine whether the early gains extend by providing fresh signals on growth, inflation and the interest-rate outlook.
