PrintFTSE 100 rises as oil price retreat lifts market sentiment
BY Reuters | ECONOMIC | 01:15 PM EDT* FTSE 100 up 0.6%, FTSE 250 down 0.2%
* Close Brothers drops after Viceroy Research reveals short position
* British consumer confidence hits lowest since last year
(Updates with closing levels)
March 16 (Reuters) - London's FTSE 100 rose on Monday as falling oil prices lifted sentiment across stock markets, with investors also keeping a close eye on the Bank of England's rate decision due later this week. The blue-chip FTSE 100 finished 0.6% higher after starting the session on a steady note.
Sentiment improved after oil prices turned negative for the day, easing around 1% after the U.S. said it would allow some Iranian, Indian and Chinese ships to pass through the Strait of Hormuz.
Talk of possible additional releases from emergency oil reserves by member countries of the International Energy Agency, as part of global efforts to bring down consumer energy prices also helped ease concerns.
The U.S.-Israeli war on Iran, now in its third week,continues to stoke turmoil across the Middle East and weigh on global energy markets.
Energy sector rose 1.3%, despite the weakness in oil prices. Oil major BP and Shell up more than 1%.
Leading the gains on the blue-chip index, however, were financial and consumer staples, which rose over 1% each.
Britain's mid-cap index closed lower for the fourth consecutive session, down 0.2%.
REIT sector advanced 1.4% with Segro
Investors' focus this week will be on interest rate decisions in the UK, the U.S., and Europe, with central banks holding their first full meetings since the start of the war and widely expected to pause further rate cuts for now.
In an early sign of the potential impact of the conflict on the economy, data showed that the British consumers have turned their least confident since the start of last year following the outbreak of the Middle East war.
Among other movers, Close Brothers tumbled 13.9% after short seller Viceroy Research posted a report on its website saying it was short the financial services firm. (Reporting by Ragini Mathur in Bengaluru; Editing by Shinjini Ganguli and Shailesh Kuber)
