Oct 5 (Reuters) - The UK's FTSE 100 rose on Monday, steadying after its steepest drop since April last week, as mining shares led gains and oil prices stayed in check.
The blue-chip FTSE 100 index rose 0.19% to 10,481.20 points at 1018 GMT. The midcap FTSE 250 dipped 0.32% to 24,114.77 points.
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Precious metal miners rose 0.55% as prices of spot gold and silver jumped 0.35% and 2.06%, respectively.
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Brent crude futures dipped 0.19% to $102.04 a barrel in choppy trading, after exports from the Middle East increased and the Group of Seven nations pledged to boost supplies.
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Still, the conflict between Yemen's internationally recognised government and Iran-backed Houthis kept investors on edge.
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A survey on Monday showed British services firms reported stronger cost pressures last month as fuel prices surged due to the Middle East conflict.
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Fuel prices have been under scrutiny owing to their impact on inflation expectations and the Bank of England's interest rate trajectory.
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"Energy prices have risen too sharply, and a drop seems too distant a prospect for the MPC (Monetary Policy Committee) to sit on its hands and hope second-round effects fail to materialise," economists at Pantheon Macroeconomics wrote.
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Traders currently see a nearly 95% chance of a rate hike at the next central bank meeting in November, according to data compiled by LSEG.
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Ithaca Energy rose 3.5% and was the top gainer on the FTSE 100 after it agreed to acquire Suncor Energy's offshore oil assets for $842 million in upfront cash.
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"The industry has consistently bemoaned the tinkering in the fiscal and regulatory set-up for oil and gas in the UK and this deal for Canadian assets provides a level of diversification," said AJ Bell investment director Russ Mould.
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Investment firm 3i Group hit its lowest level since late June and was last down 4.4%.
Reporting by Niket Nishant in Bengaluru; Editing by Priyanka G
Source: Reuters