Higher oil prices boost the FTSE 100

Last week was a good one for the London Stock Exchange, which saw the FTSE 100 gain 3.5%, with strong performance from leisure, technology and financial stocks. This rally was sparked by reassuring comments from the Fed and the BoE on the health of the US and UK economies.

The Bank of England chose to raise interest rates another by another 0.25 %, and take its main policy rate to 0.75%, which was widely expected. However, the central bank's comments were perceived as relatively dovish.

Investors also welcomed progress in ceasefire talks between Russia and Ukraine. This week-end, the Turkish foreign minister said in an interview that he hoped for a ceasefire, with both parties close to an agreement on "critical" issues.

Today, surging oil prices boosted commodity stocks, taking the FTSE 100 0.5% higher. The barrel of Brent was up 2.0% to $111 as EU governments discuss whether to impose an oil embargo on Russia. Miners also got a boost from rising London aluminium prices.

Among stocks, Inspired Energy dropped 18.2% after warning that profits could take a hit from if Gazprom's UK arm closes down.

 

Things to read today:

Will UK inflation hit a fresh multi-decade high? (Financial Times)

ECB’s Lagarde Doesn’t See Elements of Stagflation for Now (Bloomberg)