RBS plans to move jobs to India
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U.K. stocks closed higher for the first time in five sessions on Monday, with energy companies aiding in the charge north as oil prices continued to rebound after a recent selloff.
The FTSE 100 index gained 0.3% to end at 7,446.80, after logging its lowest close since June 15 on Friday.
Oil heavyweights Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) and BP PLC (BP.LN) (BP.LN) both picked up 0.3%. On the midcap FTSE 250 index , shares of Tullow Oil PLC (TLW.LN) added 2.1%.
The gains came as crude oil prices traded moderately higher, following a 10-month low hit last Wednesday on concerns that rising U.S. and Libyan supply would offset production cuts by the Organization of the Petroleum Exporting Countries.
Some mining stocks also got a boost from the upbeat sentiment around crude on Monday. Shares in Rio Tinto PLC (RIO) (RIO) (RIO) added 0.2%. But BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU), which is moving ahead on a project to help maintain iron-ore production in Western Australia (http://www.marketwatch.com/story/bhp-billiton-oks-initial-south-flank-funding-2017-06-26), gave up 0.1% after an earlier gain evaporated.
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In other sectors, shares of Royal Bank of Scotland Group PLC (RBS.LN) (RBS.LN) added 1.7%. The lender plans to cut 443 jobs and move many of them to India, according to media reports (https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=newssearch&cd=1&cad=rja&uact=8&ved=0ahUKEwiD74T8hNvUAhXELMAKHRmEAN4Qu4gBCCIoATAA&url=https%3A%2F%2Fwww.theguardian.com%2Fbusiness%2F2017%2Fjun%2F25%2Frbs-to-cut-hundreds-of-uk-jobs-in-move-to-india&usg=AFQjCNEUWIls8UmqKuoRKdnXqYXtLAabhA).
Banking stocks also gained in the wake of news that Italy's government had stepped in to shut down two failed lenders (http://www.marketwatch.com/story/italy-may-spend-billions-to-shut-two-failing-banks-2017-06-25)--and another Italian bank's rescue deal was reportedly completed (http://www.reuters.com/article/us-italy-banks-monte-dei-paschi-idUSKBN19H18I).
The pound: Sterling rose to $1.2723, up slightly from $1.2718 late Friday in New York.
"The U.K.'s post-election political uncertainty potentially comes to a head this week, with the parliamentary vote on the queen's speech, and therefore [Prime Minister Theresa] May's ability to form a government, likely coming on Thursday," said Connor Campbell, financial analyst at Spreadex, in a note.
May on Monday did score one key win, as Northern Ireland's Democratic Unionist Party made a deal (http://www.marketwatch.com/story/uks-dup-reaches-deal-to-support-minority-tory-government-reports-2017-06-26) with her Conservative Party to support the minority Tory government.
Read: Brexit one year later--5 ways the U.K. could now leave the EU (http://www.marketwatch.com/story/brexit-one-year-after-vote-here-are-the-5-possible-scenarios-for-the-eu-divorce-2017-06-20)
May had been trying to secure backing from the DUP after her party lost its parliamentary majority in the general election earlier this month. That loss was a blow to the prime minister's standing as she leads the U.K. through the Brexit divorce (http://www.marketwatch.com/story/may-offers-permanent-residency-plan-for-eu-citizens-post-brexit-2017-06-22) negotiations, which began last week.
(END) Dow Jones Newswires
June 26, 2017 12:30 ET (16:30 GMT)