London shares prices managed a positive end on Monday, as investors watched for updates on talks between Russia and Ukraine, with weakness within the heavily-weighted mining sector dragging on the gains.
The FTSE 100 ended the session up 0.57% at 7,196.25, and the FTSE 250 was 1.28% firmer at 20,464.68.
Sterling was in a mixed state, final gaining 0.12% on the dollar to commerce at $1.3053, whereas it weakened 0.54% against the euro to change hands at €1.1884.
“Equity markets have rediscovered a lot of their optimism it appears today,” quipped IG chief market analyst Chris Beauchamp.
“Sharp falls in oil prices, and certainly in different commodities, have temporarily assuage fears about rampant inflation, and with that in thoughts investors are looking to try and pick up some bargains.
“Of course some nervousness persists as Wednesday’s long-awaited Fed decision nears, however given that a quarter-point rate increase is all however assured there might not be an excessive amount of within the way of surprises from Jerome Powell and his team.”
Oil prices remained the headline, dipping earlier as merchants clung to hopes that peace talks between Russia and Ukraine would make headway.
Prices for the thick black stuff surged to highs not seen in 14 years within the final fortnight, following Russia’s invasion of Ukraine, with benchmark Brent crude touching nearly $140 a barrel at one point.
Prices began to pull again from highs over the weekend, however, and continued to melt on Monday.
At 1637 GMT, Brent crude futures were down 6.91% on ICE at $104.88 per barrel, and West Texas Intermediate was off 7.29% at $101.36.
Moscow claimed that “substantial progress” had been made in talks and that a “joint position” could be reached soon, in accordance to state-controlled information firm RIA.
On Sunday, Ukrainian negotiator Mykhailo Podolyak additionally said he thought progress could be made within the approaching days.
However, Russia continued its assaults on Ukraine, together with targeting a military base in Yavoriv, near the border with NATO member Poland.
“Oil merchants have been hoping that they will get higher information on the Russia and Ukraine war, as there was some optimism that peak talks were moving within the proper direction,” said Naeem Aslam, chief market analyst at AvaTrade.
“However, the weekend’s occasions have disrupted that optimism and we’re anticipating the oil prices to proceed their bull run and stay immensely volatile.”
In financial news, British companies were anticipating to raise prices at an “unprecedented” tempo this year, in accordance to a enterprise survey published earlier.
The IHS Markit UK Business Outlook discovered that a net balance of 62% of personal sector firms deliberate to extend prices this year, in comparison with 56% in October and the highest within the survey’s 12-year history.
IHS Markit attributed the anticipated price hikes, the tempo of which it said was “unprecedented”, to significant rises in each energy and wage costs.
Staff cost projections, fuelled by wage demands, surged to a survey-high net balance of 83%. Staff cost forecasts were highest in London and the south east.
Profits were nonetheless anticipated to grow, though forecasts were weaker in comparison with the primary half of 2021.
“The underperformance mirrored concerns that firms will be unable to fully pass their bills onto customers, and that gross sales will be tempered by the price of living crisis,” IHS Markit noted.
Manufacturers, meanwhile, were persevering with to raise each UK and export prices at record levels, one other survey revealed, amid escalating inflationary pressures throughout the board which confirmed little signal of abating.
According to the Make UK/BDO first quarter manufacturing outlook survey, UK prices rose to a balance of 58% within the primary quarter, from 52% within the ultimate three months of 2021 – the highest balances within the survey’s history, and the fourth consecutive quarter with record numbers of companies increasing prices.
Given the survey was conducted earlier than the invasion of Ukraine and the subsequent substantial will increase within the energy prices and uncooked materials, Make UK said price will increase were likely to have pushed even higher since then.
“While having fallen barely within the primary quarter, output and order balances stay at traditionally excessive levels,” said BDO head of producing Richard Austin.
“However, provide shortages are severe, and we’re seeing a worrying widening of the hole between provide and demand.”
In fairness markets, miners were a drag as base metals prices fell, with Anglo American down 5.17%, Glencore losing 5.82%, Rio Tinto off 4.76%, and Antofagasta 1.27% weaker.
Rio Tinto was additionally in focus after the Anglo-Australian miner made a $2.7bn bid to purchase the 49% of Canada’s Turquoise Hill it didn’t already own, because it looked to settle its relationship with the Mongolian authorities over the massive Oyu Tolgoi copper project.
The firm said it was providing CAD 34.00 (£20.41) in money per share – a 32% premium to Turquoise Hill’s final closing price in Toronto.
Elsewhere, British American Tobacco was 1.39% weaker after cutting its full-year guidance late on Friday, whereas announcing its exit from Russia.
Housebuilders featured on the upside, meanwhile, with Persimmon leaping 5.52% after a Sunday Telegraph report suggested that the cost for cladding remediation work could be a lot lower than the £4bn initially estimated.
According to the Telegraph, a review commissioned by the House Builders Federation put the potential cost at lower than £1bn.
Bodycote gained 2.27% after the thermal processing services supplier hailed “good progress” in 2021, with each revenues and profits higher.
Phoenix Group was up 0.96% after the life insurer boosted its dividend after annual money generation exceeded expectations.
Network International Holdings was forward 7.74% because it continued to profit from a guidance improve for 2022, and forecast little disruption from Russia’s invasion of Ukraine.
In geopolitical movements, Anglo-Russian precious metals miner Polymetal International managed gains of 0.9%, having surged earlier within the session as investors bagged a bargain following recent heavy losses.
Russia focused gold miner Petropavlovsk rocketed 9.09%, meanwhile, after the Times reported that Russian billionaire and banking oligarch Sergey Sudarikov purchased a 29% stake within the company.
Sudarikov, who’s behind the Region monetary group, apparently purchased the stake on a budget from fellow Russian tycoon Konstantin Strukov, who owns gold miner UGC and is the largest shareholder within the London-listed company.
Market Movers
FTSE 100 (UKX) 7,196.25 0.57%
FTSE 250 (MCX) 20,464.68 1.28%
techMARK (TASX) 4,246.15 0.97%
FTSE 100 – Risers
Ferguson (FERG) 11,670.00p 5.85%
Smith (DS) (SMDS) 324.40p 5.67%
Persimmon (PSN) 2,292.00p 5.52%
Barclays (BARC) 170.00p 5.52%
Smurfit Kappa Group (CDI) (SKG) 3,306.00p 5.22%
Lloyds Banking Group (LLOY) 47.73p 4.99%
Admiral Group (ADM) 2,688.00p 4.67%
NATWEST GROUP PLC ORD 100P (NWG) 217.80p 4.56%
Ashtead Group (AHT) 5,106.00p 4.40%
Mondi (MNDI) 1,466.50p 4.19%
FTSE 100 – Fallers
Glencore (GLEN) 481.55p -5.82%
Anglo American (AAL) 3,698.50p -5.17%
Rio Tinto (RIO) 5,311.00p -4.55%
Scottish Mortgage Inv Trust (SMT) 876.60p -2.17%
Prudential (PRU) 1,045.50p -2.11%
Shell (SHEL) 1,926.80p -1.87%
Flutter Entertainment (CDI) (FLTR) 8,812.00p -1.54%
British American Tobacco (BATS) 3,022.50p -1.48%
Fresnillo (FRES) 720.80p -1.29%
BAE Systems (BA.) 723.60p -1.28%
FTSE 250 – Risers
Petropavlovsk (POG) 3.08p 11.93%
Coats Group (COA) 74.10p 7.55%
Network International Holdings (NETW) 216.70p 7.17%
Mitie Group (MTO) 54.40p 6.88%
Balfour Beatty (BBY) 263.20p 6.04%
Reach (RCH) 189.60p 5.92%
Jupiter Fund Management (JUP) 200.60p 5.80%
Baltic Classifieds Group (BCG) 130.00p 5.69%
Homeserve (HSV) 668.00p 5.36%
Ashmore Group (ASHM) 237.00p 5.33%
FTSE 250 – Fallers
Fidelity China Special Situations (FCSS) 228.00p -7.13%
National Express Group (NEX) 237.80p -5.18%
BlackRock World Mining Trust (BRWM) 736.00p -4.54%
Volution Group (FAN) 410.50p -3.75%
Wizz Air Holdings (WIZZ) 2,775.00p -3.61%
Bellevue Healthcare Trust (Red) (BBH) 172.00p -3.48%
Endeavour Mining (EDV) 1,900.00p -3.31%
TBC Bank Group (TBCG) 992.00p -3.12%
Diversified Energy Company (DEC) 107.00p -3.08%
Dr. Martens (DOCS) 232.80p -3.00%
(Source)