RBS plans to move jobs to India
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.
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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.
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)