FTSE 100 trades cautiously as miners gain and oil stocks come under pressure
The FTSE 100 is trading cautiously as higher metal prices support mining stocks, while weaker crude oil prices weigh on UK-listed energy companies.
Chief Market Analyst
The FTSE 100 was trading at around 10,816 points shortly after Monday’s opening bell. Investors remained cautious at the start of the week, with sentiment still shaped by renewed trade tensions between the United States and Canada as well as planned economic sanctions against Iran. The resulting decline in crude oil prices is positive for the medium-term inflation outlook, but is weighing on UK-listed energy companies in the short term.
Among individual FTSE 100 stocks, mining companies are standing out in early trading. Rising precious and base metal prices are supporting shares of Antofagasta, Fresnillo and Anglo American. Investors are also showing renewed interest in defensive sectors such as telecommunications.
On the downside, AstraZeneca is under pressure as investors lock in profits following the company’s half-year results. The weakness is spilling over into the broader pharmaceutical sector, with GSK shares also among the laggards.
Trading is likely to remain relatively subdued during the remainder of the session, with investors reluctant to take larger positions amid a lack of fresh market-moving catalysts.
FTSE 100 expected to open lower as central banks, Iran and tech valuations stay in focus
The FTSE 100 is set for a softer start as investors weigh central-bank risk, renewed tension around Iran and whether global technology valuations can still hold up. Higher oil prices are offering some support through BP and Shell, but US CPI could become the session's main driver.
