(Sharecast News) - UK stocks bounced back on Monday after a bruising sell-off as a sharp drop in oil prices helped to repair sentiment, with shares in the mining and financial sectors providing a boost.
The FTSE 100 jumped 0.8% to 10,739.01, rebounding partially after falling 1.5% on Friday.
Brent crude was down 3.6% to $100.11 a barrel by the close, while West Texas Intermediate dropped 4.4% to $95.85 a barrel, as Saudi Arabia increased exports through the Strait of Hormuz following disruptions to its East-West pipeline due to attacks by Iran-backed Houthi rebels last week.
Analysts at JP Morgan said total oil flows averaged 17.1m barrels per day (bpd) in the past 10 days, just 6.1m bpd below the 2025 average.
Oil prices were also weighed down by comments from US president Donald Trump, who said he would "probably be open" to a meeting with his Iranian counterpart at the UN General Assembly in New York this week.
"Energy markets pulled back after [...] Trump indicated the potential for talks with Iranian president Masoud Pezeshkian, while signalling he remains in a 'deciding mode' regarding military action, economic pressure, or a deal. Brent crude futures fell [...] providing immediate relief across broader risk assets," said Patrick Munnelly, partner of market strategy at Tickmill Group.
Trump was also in focus ahead of a scheduled summit with China's Xi Jinping this week, with the main talking points expected to be trade, AI and Iran.
Dan Coatsworth, AJ Bell's head of markets, said "anticipation is building" ahead of the meeting. "Treasury Secretary Scott Bessent's comments that talks with Chinese officials at the weekend had gone well have helped to foster some optimism about US-China relations," he said.
Closer to home, economic data revealed that consumer sentiment softened in September as higher energy prices and growing concerns about a possible interest rate hike weighed heavily. The latest S&P Global consumer sentiment index came in at 42.7, down on August's 42.9 and a three-month low.
Miners, financial stocks provide a boost
Mining stocks were providing a big lift to the FTSE 100, with Metlen Energy & Metals, Antofagasta and Anglo American rising strongly.
Financials were also in demand, with IG Group, Lion Finance Group and Abrdn among the top ten risers. Banking peers HSBC, Lloyds, Barclays and NatWest were also putting in a solid performance.
Also higher were travel stocks, benefiting from an improved fuel outlook as oil prices fell, with IHG, IAG and easyJet all climbing. In contrast, oil majors BP and Shell were among the worst performers on the top-tier index, tracking crude lower.
Meanwhile, Airtel Africa shares fell a further 4%, following Friday's 11% drop, on the back of reports that the telecom group's Airtel Money arm was considering a smaller-than-expected initial public offering in London following investor feedback.
In other news, easyJet and Ithaca Energy both left the FTSE 250 to join the main 100 board in the latest quarterly reshuffle. Persimmon and Entain dropped down.
Market Movers
FTSE 100 (UKX) 10,739.01 0.75%
FTSE 250 (MCX) 24,491.37 1.18%
techMARK (TASX) 6,193.52 1.17%
FTSE 100 - Risers
Metlen Energy & Metals (MTLN) 47.60p 7.59%
Spirax Group (SPX) 7,185.00p 4.06%
Rolls-Royce Holdings (RR.) 1,504.80p 3.78%
Marks & Spencer Group (MKS) 368.10p 3.60%
Burberry Group (BRBY) 1,025.50p 3.25%
Antofagasta (ANTO) 3,773.00p 3.17%
International Consolidated Airlines Group SA (CDI) (IAG) 432.20p 3.08%
Abrdn (ABDN) 246.80p 3.01%
Diploma (DPLM) 7,485.00p 2.89%
IG Group Holdings (IGG) 1,381.00p 2.83%
FTSE 100 - Fallers
Ithaca Energy (ITH) 284.00p -4.12%
BP (BP.) 542.90p -2.83%
Glencore (GLEN) 542.20p -2.73%
Fresnillo (FRES) 2,985.00p -1.81%
Shell (SHEL) 3,488.50p -1.43%
Rentokil Initial (RTO) 317.80p -1.24%
Relx plc (REL) 2,480.00p -1.08%
Airtel Africa (AAF) 318.20p -0.93%
British American Tobacco (BATS) 4,166.00p -0.71%
Barratt Redrow (BTRW) 303.80p -0.62%
FTSE 250 - Risers
Raspberry PI Holdings (RPI) 593.00p 8.46%
Ceres Power Holdings (CWR) 425.00p 5.77%
TP Icap Group (TCAP) 345.20p 5.57%
Renishaw (RSW) 5,455.00p 5.41%
Discoverie Group (DSCV) 809.00p 5.34%
Syncona Limited NPV (SYNC) 117.40p 5.20%
XP Power Ltd. (DI) (XPP) 2,060.00p 5.10%
B&M European Value Retail (BME) 246.20p 4.68%
Schroder Asian Total Return Investment Company (ATR) 728.00p 4.60%
AEP Plantations (AEP) 207.50p 4.06%
FTSE 250 - Fallers
Energean (ENOG) 766.00p -4.55%
Trustpilot Group (TRST) 212.60p -4.49%
Harbour Energy (HBR) 271.20p -3.21%
Pan African Resources (PAF) 126.90p -2.68%
Diversified Energy Company (DI) (DEC) 1,018.00p -2.30%
HGCapital Trust (HGT) 402.50p -1.83%
Oxford Nanopore Technologies (ONT) 172.20p -1.60%
Capital Gearing Trust (CGT) 506.00p -1.56%
Greencoat UK Wind (UKW) 113.00p -1.48%
The Renewables Infrastructure Group Limited (TRIG) 78.70p -1.38%
79.88 (0.75%)
0.00