FTSE 100 gets off to a strong start as miners and energy stocks rally
The FTSE 100 has seen a slight increase, with Shell's shares reaching an all-time high due to a rebound in oil prices. The blue-chip index gained 31.03 points, or 0.41%, closing at 7,630.63.
This comes as oil and gas prices rise amidst market uncertainty due to the escalating conflict between Israel and Hamas. If tensions spread to other parts of the Middle East, it could impact the global supply of commodities.
Michael Hewson, chief market analyst at CMC Markets UK, said: "European markets have started the week cautiously higher in the absence of an escalation of tensions over the weekend, although you can be sure that investors will be keeping a wary eye on events in the Middle East as Israel weighs its next move."
"The FTSE 100 is edging higher helped by resilience in basic resources and energy with Shell seeing its share price hit a new record high."
"This move would appear to justify the recent decision by new chief executive Wael Sawan to refocus new capital expenditure on the company's key revenue earners of oil and gas, which while slightly weaker today is probably likely to remain well supported while the Middle East tensions remain."
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Investors across Europe were in a good mood, with Germany's Dax and France's Cac 40 both closing higher. Over in the US, trading started strong as worries about high inflation rates eased. Both the S&P 500 and Dow Jones were up by 1% when European markets closed.
The pound had a good day on Monday, gaining against both the dollar and the euro. However, the price of Brent Crude oil slipped slightly but stayed just above 90 US dollars per barrel.
In company news, shares in Hipgnosis Songs Fund took a tumble after it scrapped its shareholder dividend payout and lowered its expected earnings from US royalties. The company, which owns rights to music by artists like Justin Bieber and Shakira, saw its shares close 9.3% lower.
Meanwhile, shares in Boohoo went up after Mike Ashley's Frasers Group increased its stake in the fashion firm. Despite recent falls in its share price, Boohoo's shares gained 2.8% on Monday.
The top performers on the FTSE 100 were St James's Place, which rose by 32p to 672.2p, Next, which increased by 236p to 7,090p, Hargreaves Lansdown, which climbed by 22p to 761.8p, Rio Tinto, which jumped by 144p to 5,217p, and Severn Trent, which went up by 69p to 2,516p.
On the other hand, the biggest losers on the FTSE 100 were Ocado, which fell by 30.8p to 500p, Intertek, which dropped by 66p to 4,135p, Airtel Africa, which decreased by 1.7p to 116.5p, GSK, which slipped by 16.8p to 1,493.2p, and Experian, which declined by 25p to 2,751p.
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]
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