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Highlights
- FTSE100 is up by 0.20% at 7,109, supported by the metals and mining sector stocks.
- Industry lobby group UK Steel has warned of plant shutdown due to soaring electricity prices in the country.
The UK stock market is having a quiet session on the first trading day of the week. The FTSE 100 is up by 0.20% at 7,109, while FTSE 250 index is at 22,355 down by 0.80% at 13:30 GMT+1.
The blue-chip index was supported by the metals and mining sector as most of the stocks from the mining segment were trading upward. UK Steel, which is an industry body representing the steel companies in the UK, has warned of plant shutdown due to soaring electricity prices in the country.
Higher natural gas costs in the international market have led to increases in electricity prices and are expected to increase further with the winter season approaching. High electricity prices have wiped out profits for the steel companies, which may force them to shut down production and also impact the steel supply in the UK.
Top five FTSE100 gainers
Anglo American (4.48%), Antofagasta plc (3.92%), Rio Tinto plc (3.65%), Standard Chartered plc (3.41%), Hargreaves Lansdown plc (3.39%)
Top five FTSE100 losers
JD Sports Fashion plc (-2.30%), Ocado Group plc (-2.28%), Ashtead Group plc (-2.24%), Flutter Entertainment (-2.19%), Intermediate Capital Group plc (-2.16%)
European Markets
Major European market indexes are trading in the red zone on Monday. The German blue-chip DAX index is down by 0.48% at 15,132, while the benchmark index of France, CAC 40, was at 6,543, down by 0.26%. European markets are trading downward as investors look worried after Chinese real estate firm Evergrande reportedly defaulted on its interest payment once again. As per reports, the company’s foreign bondholder has not received interest payment on Monday. This is the third interest payment default by the company. It has over USD 300 billion in liabilities, which has been making investors across the globe worried.
Currency Markets
The pound continues to rise against the dollar after last week’s positive movement. The pound was up by 0.09% at 1.3623, while EUR/ GBP currency pair traded at 0.8488, down by 0.10%. The pound was trading higher against the major currencies after the Bank of England (BoE) board member, Michael Saunders, indicated that the central bank could hike the interest rates sooner than previous market expectations, primarily due to a surge in the inflation in the country.
Commodities
WTI crude oil futures contract traded at USD 81.30, up by 2.46%, while the Brent crude oil traded at USD 84.06, up by 2.03%. Crude oil trades at multiyear high following energy crisis in major economics hindering the economic recovery after the Covid-19 pandemic. Also, OPEC+ nations and its allies have decided to maintain gradual increases in the crude oil output in its last week meeting, which acted as a major boost for the crude oil prices.
Meanwhile, the gold futures contract traded lower, down by 0.12% at USD 1,755 per ounce.
Asian Markets
Major Asia Pacific indexes made a mixed closing. Australia’s ASX200 closed at 7,299, down by 0.28%, while India’s Nifty 50 closed at 17,945 up by 0.28%. Nikkei 225 of Japan was up by 1.60% at 28,498, while the Shanghai Composite of China closed at 3,591, down by 0.01%. Hang Seng index closed at 25,325, down by 1.96%.
