London’s FTSE 100 Index enjoyed a strong start to the week after energy stocks were lifted by higher oil prices and expectations that US interest rates will not rise until later this year.
BG Group rose 3% or 26.75p to 879.65p and Royal Dutch Shell improved 52p to 2178.5p after the price of Brent crude climbed to 57 US dollars a barrel.
The mood was helped by comments from Federal Reserve policymaker William Dudley, who said that US rate increases will be “shallow”. The FTSE 100 Index rose by 81.2 points to 6914.3.
Other blue-chip risers included Royal Mail, which climbed 3.9p to 446.3p after further consolidation in the parcels sector saw Dutch firm TNT Express agree a £3.2 billion takeover by FedEx.
On the fallers board, British Airways owner International Airlines Group fell 8.25p to 590.25p and easyJet dropped 7.5p to 1836.5p as a result of the recent hike in oil prices.
Regional airline Flybe bucked the trend in the airline sector after a reassuring trading update included an upbeat assessment on demand for summer flights.
The Exeter-based carrier said it would break even in the year just ended, a performance in line with the company’s profit warning in January.
Flybe shares were half a penny higher at 58p.