FTSE 100 on track to break 4-day losing streak as oil rallies
U.K. stocks rose for the first time in five sessions on Monday, lifted by shares of energy and mining giants as oil prices gained and data showed a rebound in China’s manufacturing activity.
The FTSE 100 index UKX, +0.50% gained 0.4% to 7,342.37, after ending at the lowest level since early May on Friday.
Among the biggest gainers, shares of BP PLC BP., +1.39% BP, +0.75% climbed 1% and Royal Dutch Shell PLC RDSB, +1.50% RDS.B, -0.33% gained 0.7%. The advances came as crude oil CLQ7, +0.24% jumped 0.5% to an almost three-week high at $46.29, heading for its eighth straight session of gains.
Miners were also among the FTSE’s leaders after a private gauge of China’s factory activity rebounded in June to show an expansion, indicating an improvement in the country’s manufacturing sector. China is a major user of natural resources, so any growth indications from there tend to boost the mining sector.
Shares of Glencore PLC GLEN, +2.86% GLCNF, +0.54% added 1.4%, Anglo American AAL, +2.39% put on 1.5%, and Rio Tinto PLC RIO, +1.74% RIO, +1.28%RIO, +0.52% climbed 1.2%.
On a more downbeat note, shares of Severn Trent PLC SVT, -1.01% lost 1.9% after the water utility company said it’s selling its North American business for $62 million.
Economic news: The U.K. manufacturing purchasing managers’ index for June is scheduled for release at 9:30 a.m. London time, or 4:30 a.m. Eastern Time. Economists expect the index to fall to 56.1 from 56.7 in May, according to a FactSet survey. A level above 50 indicates expansion.
The construction PMI for the U.K. comes out on Tuesday, followed by the services PMI on Wednesday.
“The release of the PMI figures from the U.K. will dictate the short-term bias for the pound this week and a positive round of figures should keep sterling supported above [$]1.2950,” said Konstantinos Anthis, analyst at ADS securities in a note.
The pound GBPUSD, -0.4453% traded at $1.3016 early on Monday, compared with $1.3024 late Friday in New York.