The FTSE 100 advanced on Monday as gains in banking shares and a decline in oil prices supported UK equities, despite renewed tensions in the Middle East following attacks on Riyadh airport.
The blue-chip index rose 0.58% to 10,614.30 points by 1044 GMT on 12 October, while the FTSE 250 gained 0.21%. Financial stocks provided the main support, with investors also assessing the outlook for energy prices and preparing for key economic data later in the week.
HSBC Holdings, Lloyds Banking Group, Barclays, NatWest Group, Standard Chartered and Standard Life were among the financial stocks making gains, rising between 1.2% and 1.9%.
Oil prices slipped after US President Donald Trump announced an agreement for Russia and Ukraine to halt attacks on each other’s energy infrastructure, alongside a deal involving Russian diesel supplies. However, uncertainty surrounding the Middle East continued to influence sentiment, following renewed Houthi attacks on Saudi airports.
The attacks have heightened concerns about regional stability and potential disruption to energy supplies. Despite the latest decline, oil prices remained elevated, reflecting uncertainty over developments in the Gulf and the Strait of Hormuz.
Investors are also awaiting US inflation data and UK economic figures, which could provide further indications of the outlook for interest rates. August UK gross domestic product data and comments from Bank of England Deputy Governor Sarah Breeden were among the domestic events attracting attention.
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