Europe: Energy stocks help steady FTSE 100 after worst week since mid-August

[BENGALURU] London's FTSE 100 ended higher on Monday as gains in energy-linked stocks aided a partial recovery from its worst weekly performance since mid-August, while Associated British Foods slipped on sales at its Primark business.

The blue-chip index climbed 0.6 per cent, after sliding 1.5 per cent last week on concerns of a stalling domestic economic recovery.

Oil majors BP and Royal Dutch Shell each rose nearly 2 per cent, tracking crude prices, while banks were 1.9 per cent higher.

The domestically focused mid-cap FTSE 250 index advanced 0.2 per cent.

Investor focus is now on data releases in Britain and the United States later this week, including jobs and keenly watched inflation and retail sales, for clues on monetary policy actions ahead of central bank meetings next week.

"There appears to be a build up in anxiety that the continued rise in inflationary pressure may well be much more persistent than central bankers would have us believe," Michael Hewson, chief market analyst at CMC Markets UK, said.

"In July both UK and US consumer prices saw a pause as some base effects dropped out of the headline numbers, and while there is some expectation that this might continue in August, this appears to be more of a hope than anything else."

Last week, a Reuters poll forecast that the Bank of England will raise borrowing costs by end-2022, earlier than previously thought, and it could come even sooner.

Among individual stock moves, Associated British Foods fell 2.4 per cent after fourth-quarter sales at its Primark fashion business were lower than expected.

Recruiter SThree rose 3.8 per cent after forecasting annual earnings "significantly above" estimates.

Transport company FirstGroup jumped 3.2 per cent after saying its First bus passenger volumes reached 65 per cent of pre-pandemic levels on average in recent weeks.

Martin Sorrell's S4 Capital fell 3.8 per cent despite the advertising group lifting its annual gross profit guidance, driven by strong demand from global tech platforms.

REUTERS