TUI shares under pressure after results
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U.K. stocks advanced Monday, pushing further into record territory as commodity shares gained ground, bolstered in part by a leap in oil prices.
The FTSE 100 index was up 0.2% at 7,454.22, adding to Friday's rise which left the index at a record close of 7,435.39 (http://www.marketwatch.com/story/ftse-100-rises-as-astrazeneca-rallies-and-pound-stalls-2017-05-12). Basic materials, oil and gas and utility shares were gaining the most, while consumer-related shares lagged behind.
Oil upswing: On Monday, shares of Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) and BP PLC (BP.LN) (BP.LN) rose 0.8% and 0.9%, respectively, with the oil producers riding up alongside a 2% rise for Brent and U.S. crude futures . Brent was fetching around $52 a barrel.
Oil and gas shares have a 14% weighting on the FTSE 100, according to FactSet.
The contracts climbed after Saudi Arabian and Russian energy ministers said they back a nine-month extension to production cuts (http://www.marketwatch.com/story/crude-oil-jumps-to-2-week-high-as-saudis-russia-back-continued-output-cuts-2017-05-15)led by the Organization of the Petroleum Exporting Countries.
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"With only 10 days left until the meeting between major producers in Vienna, we think that the near-term outlook of the precious liquid is to the upside," wrote Charalambos Pissouros, senior analyst at IronFX. "We believe that further optimistic comments from the various oil ministers regarding the prospect of an extension into 2018 is likely to keep oil prices supported heading into that meeting."
Miners shine: Shares of some metals producers were among top gainers on the FTSE 100 after China's President Xi Jinping over the weekend said there will be more than $100 billion in fresh financing to support its "One Belt, One Road" infrastructure program.
Metals prices were higher, led by a more than 1% rise for platinum futures .
"[S]ofter-than-expected figures from China overnight are being overlooked, with retail sales, industrial production and fixed asset investment figures all falling short of expectations," wrote Oanda's senior market analyst Craig Erlam. "Double-digit growth in consumer spending remains a positive of the data, given the efforts to move away from a reliance on investment and exports."
See:China's economy slows in April in 'turning point' (http://www.marketwatch.com/story/chinas-economy-slows-in-april-in-turning-point-2017-05-15)
In other moves on London benchmark, shares of TUI AG dropped 4.4% after the travel services company posted a slightly wider, first-half adjusted loss of $251.9 million euros ($273.9 million).
The pound traded at $1.2934, up from $1.2887 late Friday in New York.
(END) Dow Jones Newswires
May 15, 2017 04:09 ET (08:09 GMT)