FTSE 100 Opens Up 0.8% Post-Bank-Holiday; Oil Majors Lead, Sterling at $1.3478
The FTSE 100 opened up 79 points at 10,546 by 08:12 BST, playing catch-up after the Spring Bank Holiday closure on Monday. Oil majors led the gains: BP rose 2.7% after reporting first-quarter profit that exceeded expectations on stronger oil prices; Shell climbed 2.0%. Kingfisher, Sunbelt Rentals, Endeavour Mining and Glencore were also on the leaderboard. Melrose, Auto Trader, Vodafone and BP-laggards lagged. Brent crude was at $98.21 a barrel, up 0.7% on Monday’s lows but down sharply from Friday’s $104.22 close. Sterling firmed to $1.3478 against the dollar.
European bonds were 9-to-12 basis points lower across the curve yesterday and US 10-year Treasuries reopened five basis points lower after the long weekend. UK 10-year gilts are reopening this morning into a market that has priced in lower oil-driven inflation and a continued Bank of England rate-cut path. The Reeves cost-of-living package this week — the cancellation of the 5p fuel-duty rise, VAT cuts on summer attractions and children’s meals, £350 million critical chemicals resilience fund, £120 million ceramics support, and the removal of import tariffs from 100 food items — lands into a substantively easier macro backdrop than the brief was drafted for. The next test is whether the Doha talks deliver a signed memorandum this week or break down into renewed strikes.