Energy stocks boost British shares ahead of reopening decision

imageStock Markets5 hours ago (Jun 14, 2021 17:05)

© Reuters. FILE PHOTO: A man shelters under an umbrella as he walks past the London Stock Exchange in London, Britain, August 24, 2015. REUTERS/Suzanne Plunkett/File Photo

By Devik Jain and Amal S

(Reuters) – British shares ended higher on Monday, helped by gains in heavyweight energy stocks, while investors awaited the government’s decision on whether it would delay England’s complete reopening from a third national lockdown.

The blue-chip index, which rose as much as 0.7% to 7,187 touching its highest level since February 2020, ended 0.2% up. Oil majors BP (LON:BP) and Royal Dutch Shell (LON:RDSa) gained 1.9% and 2.7% respectively, tracking crude prices. [O/R]

The domestically focused mid-cap FTSE 250 index advanced 0.1%.

Prime Minister Boris Johnson is set to announce that the planned lifting of restrictions, which would see an end to limits on social contact, will be delayed following concern about the rapid rise of infections by the Delta variant of the coronavirus.

Health minister Matt Hancock will update parliament at around 1930 GMT after Johnson addresses the public at a news conference.

“The markets been aware that this (delay in reopening) is going to happen, and the reaction in the market is minimal,” said Keith Temperton, equity sales trader at Forte Securities.

Travel-related stocks fell 1.4%, with International Consolidated Airlines, Compass Group (LON:CPG), Just Eat (LON:JE) Takeaway.com and InterContinental Hotels Group among the top decliners.

“Leisure companies could be worst affected by any delay to lockdown easing in England as it will require a continuation of the social distancing rules,” said Russ Mould, investment director at AJ Bell.

After breaking above the 7,000 mark in mid-April, the FTSE 100 has oscillated in a narrow range on worries that a resurgence in COVID-19 cases might delay the reopening.

Among stocks, outsourcer Serco Group (LON:SRP) jumped 4.6% after it raised its 2021 profit outlook.

British broadcaster ITV (LON:ITV) gained 1% after a report that the UK would rein in online platforms’ power in an effort to protect public broadcasters.

Energy stocks boost British shares ahead of reopening decision

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave A Reply

Your email address will not be published.