FTSE 100 Index Soars Thanks to A Rebound in Oil Prices and Weak Sterling
U.K. shares jumped steeply on Monday on the back of a rebound in oil prices which boosted stocks of energy companies and mining companies higher while British Pound reversed lower against most of its peers.
The FTSE 100 index added more than 0.6 percent on the first trading session of the week to trade around 7475.00 after having closed at its lowest level since June 15 on Friday.
Shares of energy companies led the overall performance as crude oil prices continued to rebound after a recent selloff. Crude oil futures benchmarks added more than 1 percent, spurring gains in shares of Royal Dutch Shell PLC and BP., which gained 0.5% each.
Shares of mining companies also traded in positive territory. Indeed, equities of Glencore PLC soared 1.07% while those of Rio Tinto PLC and BHP Billiton PLC jumped 0.84% and 1.01%, respectively.
Meanwhile, Sterling lost nearly 0.1 percent after having climbed to one-week high in early trade. According to market sources, investors were waiting for the meeting between the leader of Northern Ireland’s Democratic Unionist Party (DUP), Arlene Foster, and Theresa May, which is expected to help the Prime Minister to form a government with the support of the DUP.
Buy Stop at 7475.00, Take profit at 7530.00, Stop loss at 7450.00