LONDON MARKETS: Miners, Oil Shares Lead The FTSE 100 Higher

By Carla Mozee, MarketWatch

Pullback in pound to below $1.30 also helps index rise

U.K. blue-chip shares gained Monday, with energy shares advancing on the back of a rise in oil prices ahead of this week's OPEC meeting to discussion production targets.

The FTSE 100 index picked up 0.3% at 7,495.50, topped by the basic materials group.

"Solid growth in [the FTSE's] commodity stocks -- themselves aided by Brent crude's push towards $54 per barrel -- provided the main thrust of the U.K. index's rise, complimented by an early fall from the pound," said Spreadex financial analyst Connor Campbell in an early Monday note.

The FTSE 100 on Friday rose 0.5% (http://www.marketwatch.com/story/uk-stocks-break-2-day-losing-streak-after-pounds-mini-flash-crash-2017-05-19). That move lifted the index up 0.5% for the week, a fourth consecutive weekly advance.

Energy boost: Shares of oil producers BP PLC (BP.LN) (BP.LN) and Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) each rose 0.3% as oil prices advanced. Brent , the global benchmark, and West Texas Intermediate crude futures were each gaining nearly 1%.

Crude oil prices were trading at their highest in more than a month on Monday, helped by hopes of a revamped output deal at Thursday's Organization of the Petroleum Exporting Countries meeting in Vienna. Analysts widely expect the group to agree to extend oil-production cuts of 1.8 million barrels for another six months at least.

Read:4 potential outcomes for OPEC's crucial meeting (http://www.marketwatch.com/story/4-potential-outcomes-for-opecs-crucial-meeting-2017-05-19)

Miners aloft: Mining shares were also rising, with Anglo American PLC (AAL.LN) up 1.6%. Fresnillo PLC (FRES.LN) and Randgold Resources PLC (RRS.LN) each moved higher by 1.4%.

The pound bought $1.2979 compared with $1.3037 late Friday in New York. Investors began the week with news that the Conservative Party's lead over the Labour Party has narrowed in polls in the runup to the June 8 general election, with the gap now in single digits.

A weaker sterling can help bolster foreign-denominated earnings made by multinational companies on the FTSE 100.

The London benchmark had faced a loss as the pound last week pushed above $1.30 for the first time since September and as equities sold off on concerns that controversies surrounding the White House would derail U.S. President Donald's pro-growth agenda.

Read:Here's how impeachment works -- and why Trump is safe for now (http://www.marketwatch.com/story/heres-how-impeachment-works---and-why-trump-is-safe-for-now-2017-05-17)

(END) Dow Jones Newswires

May 22, 2017 04:13 ET (08:13 GMT)

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