FTSE Climbs to a Five-Month High as Oil Slides
The FTSE 100 climbed to a five-month high, rising 0.8 per cent to around 10,871, as oil slid further on the pause in the US–Iran war and hopes of a deal over the Strait of Hormuz. Brent crude fell about 5 per cent to roughly $83 a barrel, its lowest in weeks, dragging down the war-risk premium that had spiked prices towards $100. Sterling was steady and gilt yields eased below 5 per cent.
The London market has been buoyed by the retreat in energy prices and a run of solid corporate earnings, even as Wall Street traded more cautiously. The fall in oil eases the inflationary threat hanging over the Bank of England, which sets interest rates on Thursday and is widely expected to hold. For mortgage-holders, the combination of cheaper oil and steady rates offers some respite after a turbulent month. The calm rests on the Gulf truce holding: any breakdown could reverse the gains quickly. Watch the Bank’s decision on Thursday and the oil price.