London shares closed higher on Monday, with banks leading the gains. Risk appetite worldwide got a boost after oil prices retreated on hopes of diplomatic progress in the Middle East. The blue-chip FTSE 100 index rose 0.75% to 10,739.01 points after declining almost 1.5% in the previous session. The midcap FTSE 250 climbed 1.18% to its highest level in nearly two weeks.
Heavyweight banks were among the top gainers. HSBC climbed 1.4%, Barclays gained 1.9% and Standard Chartered rose 1.7%. The aerospace and defence sector rose 2.8%, with Rolls-Royce gaining 3.8% and BAE Systems inching up 1.2%.
Copper prices rose for a fifth straight session, approaching record highs, as hopes of stronger Chinese demand fueled buying. Miners Antofagasta and Anglo American jumped about 3.2% and 2.9%, respectively. [MET/L]
Oil prices slid towards the psychological threshold of $100 a barrel and to their lowest in 11 days. Investors hoped for diplomatic progress in resolving the Iran war ahead of this week's UN meeting. Energy stocks were down 1.9%, with BP and Shell falling 2.8% and 1.4%, respectively. [O/R] Declining crude prices also boosted travel-related companies, with airline operator IAG climbing 2.9%.
Healthcare investment firm Syncona leaped 5.2% after its portfolio company Beacon Therapeutics' Phase II/III VISTA trial met the US FDA-endorsed primary endpoint for gene therapy laru-zova. Craneware plummeted 25.8% after the healthcare financial software firm cut its full-year revenue outlook.
Investors await this week's meeting between US President Donald Trump and Chinese President Xi Jinping for clues on trade relations and economic outlook. "Hopes of improved relations between the world's two largest economies were boosted by U.S. Treasury Secretary Scott Bessent describing weekend discussions with Chinese officials as successful," AJ Bell investment director Russ Mould said.
British government bond yields eased after jumping last week, while the pound dipped around 0.2% a week after the Bank of England kept interest rates unchanged.
