FTSE 100 opened on a positive note and the index climbed 0.8% or 76.04 points to 10,041.20. The rally was largely influenced by a sharp decline in oil prices. Brent crude dropped nearly 5% to just below $100 per barrel. This eased inflation concerns.
The decline in oil prices comes with expectations of de-escalation in the Middle East. The geopolitical development supports global equities.
The increase in equities was led by mining and industrial stocks which posted strong gains across the board.
Antofagasta rose by 3.49% to £3,499 while Fresnillo gained 3.06% to £3,298. It reflects strength in commodity-linked counters. Croda International also advanced 2.99% to £2,825, backed by improved market sentiment.
International Airlines Group also climbed 2.93% to £368.90 while Anglo American added 2.49% to £3,130 and Endeavour Mining rose 2.42% to £4,228.
Energy and defensive stocks underperformed as oil prices declined. Shell fell by 1.30% to £3,415, while BP slipped 0.81% to £553, tracking the drop in crude prices.
Among others, Reckitt Benckiser declined 0.59% to £5,080, Coca-Cola Europacific Partners edged lower by 0.29% to £6,960 and Experian dropped 0.23% to £2,560.
A subsidiary of Diageo has pocketed £1.3 billion from the sale of the Indian Premier League Royal Challengers Bangalore (RCB) as the drinks giant divests assets to focus on its core business.
The firm acquired Royal Challengers just over a decade ago as part of its acquisition of a majority stake in United Spirits.
Diageo has quietly kept the club in its portfolio ever since, but new boss Dave Lewis has been on the lookout to cut the fat from the business, including the disposal of non-core assets.
UK inflation remained steady at 3% in February, but concerns are building over a potential spike driven by rising energy costs.
Analysts expect inflation to climb toward 4.6% later this year as higher petrol, diesel, and gas prices begin to filter through the economy.
There are also expectations that the Ofgem utility price cap could increase by around 30% in July which may add further pressure on household budgets.
Additionally, food inflation is projected to rise toward 8% in the coming months. This signals persistent cost pressures.
Also Read: Stock Market Today: Sensex Jumps 1,456 Points to 75,529, Nifty 50 Tops 23,374
In the US, S&P 500 index closed down by 0.4% and Dow Jones Industrial Average dropped 0.2%.
In Asia, Japan’s Nikkei 225 rose 2.8%, trading at 53,749.6 points. South Korea’s Kospi jumped 1.5%, with SK Hynix inching up 0.9% after the chip maker said it was taking steps for listing in the US.
China’s CSI 300 led the rally across the country. It climbed 1.4% to 4,537.4 points. Shanghai’s Composite index increased 1.3%, while the Hang Seng index rose 0.5%.
India’s leading indexes also recorded gains, with the Sensex up 2.3% and the Nifty 50 up 2.2%.
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