Mining shares helped support the FTSE 100 on Monday as markets weighed stronger metals prices against pressure on energy stocks and a busy week of global events.
The FTSE 100 was 0.2% higher at 10,835.77 points in late morning trading, while the FTSE 250 was little changed at 24,725.18 points. The difference reflected the stronger performance of large international mining groups, which carry significant weight in the blue-chip index.
Anglo American rose 2.2% and Rio Tinto gained 0.6% as a weaker US dollar supported metal prices. Because many commodities are priced in dollars, a softer US currency can improve demand conditions and support pricing.
The move gave the FTSE 100 some protection from weakness in the energy sector. BP and Shell both came under pressure as oil prices fell ahead of expected new US sanctions targeting countries that trade with Iran.
The sanctions could affect oil supply expectations and shipping conditions in the Middle East. Attention remains focused on the Strait of Hormuz, a major route for global crude shipments. Any change in the flow of oil through the region could quickly affect pricing and the outlook for large UK-listed energy companies.
Shell also remained in focus after reports that ExxonMobil and LyondellBasell had shown interest in its US chemicals operations. The assets could be worth as much as $8 billion. However, the shares still moved lower during the session as weaker oil prices remained the more immediate factor.
Markets are also preparing for several events that could influence global risk appetite this week.
Nvidia is due to report results, giving markets another indication of the strength of demand linked to artificial intelligence. The company has become an important reference point for expectations around technology spending and AI investment. A significant change in those expectations could affect sentiment across global equity markets, including the internationally exposed FTSE 100.
Attention will also turn to Federal Reserve Chairman Kevin Warsh at the Jackson Hole conference. His first speech at the event is expected to be closely watched for signals on monetary policy, particularly after recent moves in bond yields.
Any shift in expectations for US interest rates could affect the dollar, commodity prices and global equities. That makes the speech relevant to many FTSE 100 companies, even when their main operations are outside the United States.
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