FTSE 100 steady as rise in oil and industrial stocks counteract pressure on Asia-focussed banks
London’s main index was unchanged and Sino-U.S. trade talks is once again set to take centre stage at this week’s G20 summit
London’s main index was unchanged on Monday as a rise in oil majors and industrial stocks counteracted pressure on Asia-focussed banks, with the Sino-U.S. trade talks once again set to take centre stage at this week’s G20 summit.
The FTSE 100 and the mid-cap FTSE 250 were roughly flat by 0814 GMT.
Shell (LON:RDSa) rallied for the seventh straight session, while BP (LON:BP) was also a plus for the blue-chip index, as the potential for supply disruptions because of tensions between the United States and Iran pushed crude prices higher.
Investors will be watching intently on the outcome of President Donald Trump’s upcoming meeting with Chinese counterpart Xi Jinping at the G20 summit in Japan, which could very well influence the course of a protracted trade war that has roiled the global economy.
Ahead of the meeting, Chinese Vice Commerce Minister Wang Shouwen said both countries should make compromises in trade talks, after negotiations broke down last month.
HSBC and Standard Chartered (LON:STAN), both marginally down, kept the main index’s gains in check.
Admiral Group (LON:ADML) was among the biggest gainers on the FTSE 100 after Barclays (LON:BARC) upgraded the insurer’s rating by two notches.
Barclays analysts wrote that their analysis suggests insurance prices have reached an inflection point in the second-quarter and they see this as a positive for Hastings and Admiral.
Mid-cap insurer Hastings added 1.1%.
Relx, an information and analytics provider, rose 1.8% after Credit Suisse (SIX:CSGN) raised its price target on the stock.
Supermarket chains Tesco (LON:TSCO) and Sainsbury slipped, however, giving up 2% each after a forecast showed consumer spending in Britain this year would grow at its slowest rate in six years.
On the mid-cap index, Dixons Carphone (LON:DC) dropped 5% as last week’s disappointing annual results prompted further rating downgrades of Britain’s biggest seller of electricals and mobile phones.
Aston Martin skidded 1.5% as Mercedes-Benz owner Daimler’s profit warning triggered a sell-off among European carmakers.