Highlights
- FTSE 100 up 52 points at 10,606
- Banks lead the charge
- Pennon downgraded
Banks lead the charge
The FTSE 100 rose 52 points, with banks providing support.
Heavily sold down on Friday, Standard Chartered gained 1.5%, HSBC rose 1.4% and Barclays advanced 1.3%.
International Airlines Group, the British Airways owner, climbed 1.4% as retreating crude oil prices eased pressure on expected fuel costs. Burberry and Airtel Africa each added more than 1%.
The FTSE 250 gained 46 points, or 0.2%, to 24,260, while the FTSE AIM All-Share slipped 0.1%.
Going the other way, Pennon Group fell after Deutsche Bank downgraded the water utility from 'buy' to 'hold' and cut its price target from 550p to 380p.
It cited stagnant earnings forecasts and equity returns that fall below the cost of capital through the remainder of the current regulatory period.
London set for positive start
London's blue-chip index is set to open 28 points higher on Monday, tracking a broadly positive lead from Wall Street, where the S&P 500 gained 0.6% and the Dow Jones Industrial Average rose 0.8% on Friday to extend a record-setting week.
Asian trade was thin overnight, with Japan's cash equity markets closed for Sports Day and US bond markets shut for Columbus Day.
Oil prices retreated despite fresh Middle East tensions, with Brent crude falling 1.6% to $103.01 a barrel after earlier touching $105.63.
Uncertainty over a proposed Russia-Ukraine energy ceasefire added to the cautious mood, after President Donald Trump claimed both sides had reached an agreement that neither Kyiv nor Moscow confirmed.
Investors are bracing for a heavy week of US data, with consumer and producer inflation figures and retail sales numbers all due, alongside the start of third-quarter earnings season.
