FTSE 100 gains as oil stocks jump; Cineworld slumps
Reuters
Published Oct 05, 2020 08:32
Updated Oct 05, 2020 09:50
By Shashank Nayar
(Reuters) - London's FTSE 100 rose on Monday, lifted by oil stocks as crude prices jumped after doctors treating U.S. President Donald Trump for COVID-19 hinted that he was doing well, while Cineworld fell sharply after it said it was considering temporarily closing all U.S. and UK screens.
The blue-chip index (FTSE) hit its highest level since Sept. 18 and was last up 0.5%, led by gains in oil majors BP (L:BP) and Royal Dutch Shell (L:RDSa), while the mid-cap index (FTMC) rose 0.8%.
"Investors are focusing on the broader picture right now with sentiment turning slightly positive on anticipation of fresh U.S. stimulus," said David Madden, an analyst at CMC Markets. "However, traders will remain cautious until there is more clarity on the U.S. presidential election."
The FTSE 100 was on track to post a third consecutive session of gains even as growing coronavirus fears and Brexit uncertainty kept hopes for further upside in check.
A failure to secure a post-Brexit trade deal with the European Union, coupled with the COVID-19 outbreak, could cost the UK around 134 billion pounds ($174 billion) each year in lost GDP for a decade, research by law firm Baker & McKenzie showed.
The final services PMI numbers for September showed Britain's economy proved more resilient than initially thought despite a tightening of lockdown restrictions and an end to a temporary government subsidy for businesses.
Shares of Cineworld (L:CINE) slumped 30.0% after the world's second-biggest cinema operator said it was considering temporarily closing all its screens in the United States and Britain after studios pulled major releases.
Engineering company Weir Group Plc (L:WEIR) gained 16.3% after it said it had agreed to sell its oil and gas division to U.S. heavy equipment maker Caterpillar Inc (N:CAT) for $405 million in cash.
Luxury brand Mulberry (L:MUL) dropped 3.0% after it reported a year to end-March loss of 14.2 million pounds ($18.4 million).
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.