London close: Stocks snap losing streak as oil prices pull back

(Sharecast News) - UK stocks finished higher on Monday for the first time in four sessions as oil prices erased earlier gains, supported by a solid start on Wall Street.

The FTSE 100 rose 0.6% to settle at 10,317.69, finishing in positive territory for only the third time over the past two weeks. Markets across Europe finished firmly high, extending gains before the close with the three main US indices rising around 1% each after the opening bell.

Oil prices eased slightly after their recent surge, pulling back 0.9% to $102.21 a barrel but still holding near levels not seen since 2022 amid disruption along the key Strait of Hormuz. The commodity had hit an earlier intraday high of $106.50 before erasing gains in afternoon trade.

"Stock markets stand or fall by the oil price at present, and in the topsy-turvy world created by the war against Iran, the absence of bad news, and hopes that the war will last weeks rather than months, is enough to prompt a recovery in equities," said Chris Beauchamp, chief market analyst at IG.

"Just as equity traders find themselves trading and watching oil, commodities traders are now transfixed by the movements of individual ships through Hormuz. A second week where oil fails to hold above $100 might start to suggest that investors are still happy to sell the rallies in Brent and WTI on the basis that the US will take steps to prevent Iran closing the strait on a permanent basis."

Geopolitics aside, investors were eyeing a string of policy announcements this week from the Reserve Bank of Australia, Bank of England, European Central Bank, Federal Reserve, Bank of Canada and the Bank of Japan.

Before the onset of war in the Middle East, analysts were widely expecting the BoE to trim rates to help bolster growth. However, with oil and gas prices having surged since the end of February, analysts are now expecting rates to be left on hold at 3.75%.

Segro, consumer goods firms in the black

Segro was the standout gainer on the FTSE 100 index after saying it will develop a UK data centre for an existing client and confirming it had received planning committee approval for its first fully fitted data centre.

Consumer goods firms Haleon after Berenberg nudged up its price target for the shares and kept a 'buy' rating, saying that 2026 should mark a turning point in Haleon's evolution into a consumer-centric business. Sector peer Reckitt Benckiser was also in the black.

Building materials group CRH was up after announcing plans to delist from the London Stock Exchange. Since September 2023, CRH's primary listing has been on the New York Stock Exchange.

On the FTSE 250, Marshalls edged higher after it posted a drop in full-year profit that was in line with market expectations as the diversified building products manufacturer returned to revenue growth for the first time since 2022.

Great Portland Estates advanced after saying it had sold the wells&more building in London's Fitzrovia to Feldberg Capital on behalf of Fastighets AB Balder for a headline price of �172m.

Meanwhile, Close Brothers shares dropped 14% after infamous shortseller Viceroy Research claimed the financial services firm had "systematically misrepresented" its exposure to the motor finance scandal and will have to "at least" double its current provisions.

Market Movers

FTSE 100 (UKX) 10,317.69 0.55%

FTSE 250 (MCX) 22,035.37 -0.16%

techMARK (TASX) 5,835.25 -0.43%

FTSE 100 - Risers

Haleon (HLN) 385.70p 2.91%

Reckitt Benckiser Group (RKT) 5,484.00p 2.54%

Airtel Africa (AAF) 359.00p 2.40%

SEGRO (SGRO) 743.20p 2.31%

Hikma Pharmaceuticals (HIK) 1,266.00p 2.10%

Hiscox Limited (DI) (HSX) 1,523.00p 1.87%

British Land Company (BLND) 372.40p 1.86%

CRH (CDI) (CRH) 7,664.00p 1.81%

Prudential (PRU) 1,090.00p 1.77%

Melrose Industries (MRO) 508.00p 1.74%

FTSE 100 - Fallers

JD Sports Fashion (JD.) 71.58p -2.80%

Spirax Group (SPX) 6,630.00p -2.71%

Entain (ENT) 533.20p -2.63%

Rightmove (RMV) 451.80p -2.63%

easyJet (EZJ) 362.80p -2.29%

Intertek Group (ITRK) 3,650.00p -2.25%

Croda International (CRDA) 2,624.00p -1.94%

Smurfit Westrock (DI) (SWR) 2,957.00p -1.92%

DCC (CDI) (DCC) 4,624.00p -1.87%

Metlen Energy & Metals (MTLN) 37.05p -1.72%

FTSE 250 - Risers

W.A.G Payment Solutions (EWG) 106.00p 4.95%

Pan African Resources (PAF) 150.20p 4.16%

Hammerson (HMSO) 328.60p 4.12%

Marshalls (MSLH) 147.60p 3.65%

Endeavour Mining (EDV) 4,526.00p 3.05%

Ocado Group (OCDO) 204.20p 2.95%

Helios Towers (HTWS) 183.20p 2.92%

Savills (SVS) 928.00p 2.88%

Ithaca Energy (ITH) 263.50p 2.73%

Harworth Group (HWG) 172.00p 2.69%

FTSE 250 - Fallers

Close Brothers Group (CBG) 357.60p -13.91%

Vistry Group (VTY) 389.10p -5.81%

Shawbrook Group (SHAW) 359.00p -5.40%

NCC Group (NCC) 120.40p -4.90%

Twentyfour Income Fund Limited Ord Red (TFIF) 105.20p -4.88%

Partners Group Private Equity Limited. (EUR) (PEY) 9.22p -3.96%

Kainos Group (KNOS) 758.00p -3.56%

Oakley Capital Investments Limited (DI) (OCI) 473.00p -3.47%

RS Group (RS1) 609.50p -3.41%

Bodycote (BOY) 640.50p -3.10%