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.
