The FTSE 100 closed 0.8% higher at 10,739.01 on Monday, while the FTSE 250 gained 1.2% to 24,491.37, as falling oil prices and improved sentiment around US-China relations supported European markets.
Brent crude fell sharply to around $100.28 a barrel from $104.37 on Friday, after US President Donald Trump signalled he would be open to meeting Iranian President Masoud Pezeshkian during this week’s UN General Assembly.
Lower oil prices helped ease some inflation concerns, although crude remains more than 40% above pre-war levels.
Investor sentiment was also supported by progress in US-China trade and artificial intelligence talks, with US Treasury Secretary Scott Bessent describing weekend discussions with Chinese officials as “very successful”. Trump and Chinese President Xi Jinping are due to meet on Thursday.
European markets were broadly stronger, with Germany’s DAX up 1.1% and France’s CAC 40 gaining 0.9%. Wall Street was also higher by the London close, with the S&P 500 up 1.0% and the Nasdaq gaining 1.6%.
On the FTSE 100, Metlen Energy & Metals rose 7.6% and Antofagasta gained 3.2%, while lower oil prices weighed on energy stocks, with Ithaca Energy down 4.1%, BP down 2.8% and Shell down 1.4%.
Elsewhere, JD Sports gained 0.4% after announcing a long-term franchise partnership to launch the JD brand in Mexico.
On the FTSE 250, Elixirr International plunged 20% despite reporting higher revenue and profit, after free cash flow weakened and Peel Hunt downgraded the shares to ‘reduce’.
US bond yields eased slightly, with the 10-year Treasury yield at 4.97%, while sterling was broadly steady near $1.337.
Attention now turns to UK public-sector borrowing data on Tuesday, alongside results from Kingfisher and Smiths Group.
