London markets kick off new week in mixed style as BP and Shell jump

London markets kicked off a new trading week in mixed fashion today, with the FTSE 100 led higher by oil and gas giants.

The capital’s premier FTSE 100 index jumped 0.89 per cent to 7,232.65 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dipped 0.24 per cent to 18,592.95 points.

The reasonably positive start to the week means the FTSE 100 has pared back some of the losses registered at the beginning of the month that were caused by it being caught up in a global market sell off.

However, it is still down around five per cent over the last month.

Oil mega caps BP and Shell led the gains, each adding around four per cent.

The two firms represent an enormous share of the FTSE 100, meaning movements in their share prices exert a strong influence over the index’s direction.

The FTSE 100 has been partially shielded from global equity market plunges due to it having a heavy weighting toward so-called “old economy” stocks that have held up well since the beginning of the year.

Retailers drove the mid-cap FTSE 250 lower. Pets at Home tumbled nearly 10 per cent in a sign that investors are ditching the firm’s stock as they bet the pandemic boom in pet sales eases as life returns to normal. A downbeat analyst note also fed the sell off.

Card retailer Moonpig fell nearly seven per cent, while cult-bootmaker Dr Martens dipped 2.9 per cent.