UK stocks stabilise as energy gains offset retail losses
The FTSE 100 closed 0.4% higher, or 29.19 points, at 7,361.31.
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Your support makes all the difference.Energy and industrial stocks helped lift London’s top index higher on Monday, starting the week off on a more optimistic note as investors prepare to wind down for the Christmas holidays.
The FTSE 100 reversed heavy losses suffered last week when investors were reeling from the Bank of England and European Central Bank’s interest rate hikes.
But a rebound in oil prices helped lift energy giants BP and Shell, which were among the biggest gainers on the blue-chip index back on Monday.
It has been a modestly positive start to the week for European markets after the declines of last week and as we head into the dying embers of a year that has seen some significant volatility and weakness
Meanwhile, Next, JD Sports, Frasers Group, and B&Q owner Kingfisher sunk towards the bottom as widespread rail strikes continue to dampen the important Christmas trading period for UK retailers.
The FTSE 100 closed 0.4% higher, or 29.19 points, at 7,361.31.
Michael Hewson, chief market analyst at CMC Markets UK, said: “It has been a modestly positive start to the week for European markets after the declines of last week and as we head into the dying embers of a year that has seen some significant volatility and weakness.
“Basic resources have seen a modest rebound on the back of a pledge by the Chinese government to stabilise the economy in the coming weeks, despite continued rising Covid infections.
“Retailers have taken a bit of a nosedive after retail consultancy Springboard revealed that footfall on the high street during last week fell by 4.6% due to the cumulative effects of the rail strikes and cold weather.
“Coming on top of a weak November retail sales number earlier this month, there is rising concern that we could see further warnings on profits when we get the latest retail trading updates at the beginning of January.”
Elsewhere in Europe, the German Dax was up 0.36% and the French Cac was up 0.32%.
It was a gloomier start to trading for stocks across the pond, with the US S&P 500 down 0.55% and Dow Jones down around 0.15% when European markets closed.
The pound gained 0.3% against the US dollar and was trading at 1.2176 dollars.
In company news, Tesco is facing a landmark lawsuit over forced labour allegations at VK Garment Factory in Thailand.
A group of 130 former employees are suing Tesco and auditing specialists Intertek for “alleged negligence and unjust enrichment”, which Tesco said were “incredibly serious” allegations.
The news did not affect Tesco’s share price, however, which was 0.63% higher at the end of the day.
Private healthcare operator Spire has snapped up The Doctors Clinic Group in a £12 million deal, meaning it will take over its 200 corporate clients and 22 private GP clinics.
Spire said that, under its ownership, the firm is expected to break even in 2023 before becoming profitable in 2024. Shares in Spire were up 0.45%.
The biggest risers on the FTSE 100 were Melrose Industries, up 3.95p to 128p, Airtel Africa, up 3.1p to 113p, BP, up 11.2p to 466.6p, Shell, up 44p to 2,287p, and CRH, up 62p to 3,233.5p.
The biggest fallers on the FTSE 100 were Dechra Pharmaceuticals, down 104p to 2,628p, London Stock Exchange Group, down 206p to 7,134p, Rightmove, down 14.6p to 516.6p, Auto Trader, down 12.6p to 521.8p, and JD Sports Fashion, down 2.45p to 115.65p.