The FTSE 100 slipped on Monday as oil prices ticked higher amid reports that Middle East talks were progressing, but not at the pace many would like to see
Brent crude rose 1% to $84.10 on reports that Iran and Oman were nearing a deal requiring engagement with the US, which didn’t appear forthcoming.
London’s leading index was trading down 0.3% at 10,867 – still within touching distance of the all-time record highs.
The index may have been lower if not for a rally in US stocks on Friday, which helped lift the mood as technology shares showed further signs of stabilisation.
“The FTSE 100 dipped in early trading in stark contrast to the fireworks seen on Wall Street late last week,” said AJ Bell investment director Russ Mould.
“The US rally was supported by weaker-than-anticipated US jobs numbers which helped dial down fears about an imminent rate hike from the Federal Reserve.
“The Iran conflict remains a key source of concern for markets with a lasting resolution seeming a distant prospect at this point. Tehran has apparently resisted direct negotiations with Washington over a reopening of the Strait of Hormuz until several conditions are met.”
Miners were among the best performers of the session after commodities finished last week on a high. Fresnillo was the FTSE 100’s top riser, adding 2.2%. Glencore rose 2.1%.
Technology-focused investment trusts Scottish Mortgage and Polar Capital Technology Trust benefited from a US technology rally on Friday. Both stocks count Nvidia as a top holding, which rose 2.3% on Friday, while Scottish Mortgage’s 25% weighting towards SpaceX proved useful as the newly listed AI company rallied 15%.
Coca-Cola HBC was the FTSE 100’s top faller after Exane BNP analyst cut their rating to neutral from outperform.