Further oil price gains boosts FTSE 100

Further gains in oil prices boosted industrial stocks this morning, lifting the FTSE 100 into positive territory.

The capital’s premier index was up 0.12 per cent to 7,104.27 points during the first couple of hours of trading.

Industrials led the FTSE higher this morning, with oil megacaps BP and Royal Dutch Shell both climbing more than 1.30 per cent. Miners kicked off the week in positive fashion. Anglo American, Rio Tinto and Glencore topped the risers column.

Oil prices have been on a tear in recent months. Brent Crude added 1.78 per cent this morning, while WTI rose 2.33 per cent. Both benchmarks cost over $80 a barrel.

Financials and energy stocks supported industrials, as investors tilt toward banks’ earning season kicking off this week with the Wall Street giants.

Online retailer Asos was the biggest casualty on London markets this morning due to investors dumping the stock after its chief Nick Beighton stepped down. Its shares were down 7.98 per cent.

Russ Mould, investment director of AJ Bell, said: “The scale of the problems at ASOS appear to have been underestimated but the company parting ways with its chief executive is less of a surprise. Nick Beighton has been struggling to steer the ship through problems that go back quite a few years.”

“The near-term outlook is somewhat bleak for ASOS. Sales growth is expected to slow quite dramatically; cost pressures and supply chain problems could remain intact for a while, which means profit margins will be squeezed; and consumer uncertainty could result in volatile trading patterns.”

European shares struggled to get off the ground. Germany’s Dax 30 and the pan-Europe Stoxx 600 dropped 0.46 per cent and 0.44 per cent respectively.

The pound rallied against the greenback, strengthening 0.24 per cent to buy $1.3643.