LONDON MARKETS: FTSE 100 Breaks 4-day Losing Streak As Oil Rallies
27 June 2017 - 2:45AM
Dow Jones News
By Sara Sjolin and Victor Reklaitis, MarketWatch
RBS plans to move jobs to India
U.K. stocks closed higher for the first time in five sessions on
Monday, with energy companies aiding in the charge north as oil
prices continued to rebound after a recent selloff.
The FTSE 100 index gained 0.3% to end at 7,446.80, after logging
its lowest close since June 15 on Friday.
Oil heavyweights Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) and
BP PLC (BP.LN) (BP.LN) both picked up 0.3%. On the midcap FTSE 250
index , shares of Tullow Oil PLC (TLW.LN) added 2.1%.
The gains came as crude oil prices traded moderately higher,
following a 10-month low hit last Wednesday on concerns that rising
U.S. and Libyan supply would offset production cuts by the
Organization of the Petroleum Exporting Countries.
Some mining stocks also got a boost from the upbeat sentiment
around crude on Monday. Shares in Rio Tinto PLC (RIO) (RIO) (RIO)
added 0.2%. But BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU), which
is moving ahead on a project to help maintain iron-ore production
in Western Australia
(http://www.marketwatch.com/story/bhp-billiton-oks-initial-south-flank-funding-2017-06-26),
gave up 0.1% after an earlier gain evaporated.
In other sectors, shares of Royal Bank of Scotland Group PLC
(RBS.LN) (RBS.LN) added 1.7%. The lender plans to cut 443 jobs and
move many of them to India, according to media reports
(https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=newssearch&cd=1&cad=rja&uact=8&ved=0ahUKEwiD74T8hNvUAhXELMAKHRmEAN4Qu4gBCCIoATAA&url=https%3A%2F%2Fwww.theguardian.com%2Fbusiness%2F2017%2Fjun%2F25%2Frbs-to-cut-hundreds-of-uk-jobs-in-move-to-india&usg=AFQjCNEUWIls8UmqKuoRKdnXqYXtLAabhA).
Banking stocks also gained in the wake of news that Italy's
government had stepped in to shut down two failed lenders
(http://www.marketwatch.com/story/italy-may-spend-billions-to-shut-two-failing-banks-2017-06-25)--and
another Italian bank's rescue deal was reportedly completed
(http://www.reuters.com/article/us-italy-banks-monte-dei-paschi-idUSKBN19H18I).
The pound: Sterling rose to $1.2723, up slightly from $1.2718
late Friday in New York.
"The U.K.'s post-election political uncertainty potentially
comes to a head this week, with the parliamentary vote on the
queen's speech, and therefore [Prime Minister Theresa] May's
ability to form a government, likely coming on Thursday," said
Connor Campbell, financial analyst at Spreadex, in a note.
May on Monday did score one key win, as Northern Ireland's
Democratic Unionist Party made a deal
(http://www.marketwatch.com/story/uks-dup-reaches-deal-to-support-minority-tory-government-reports-2017-06-26)
with her Conservative Party to support the minority Tory
government.
Read: Brexit one year later--5 ways the U.K. could now leave the
EU
(http://www.marketwatch.com/story/brexit-one-year-after-vote-here-are-the-5-possible-scenarios-for-the-eu-divorce-2017-06-20)
May had been trying to secure backing from the DUP after her
party lost its parliamentary majority in the general election
earlier this month. That loss was a blow to the prime minister's
standing as she leads the U.K. through the Brexit divorce
(http://www.marketwatch.com/story/may-offers-permanent-residency-plan-for-eu-citizens-post-brexit-2017-06-22)
negotiations, which began last week.
(END) Dow Jones Newswires
June 26, 2017 12:30 ET (16:30 GMT)
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