Oil slide as worries over OPEC supply persist
U.K. stocks broke a three-session losing run on Monday as investor anxiety over tensions between the U.S. and North Korea subsided after officials sought to reassure Americans that there won't be a nuclear war.
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The FTSE 100 index rose 0.5% to 7,343.26, rebounding from its lowest close since May 8, reached on Friday. The blue-chip benchmark last week slid 2.7%, suffering its biggest weekly decline since the week ending April 21, when Prime Minister Theresa called an early election.
The downbeat mood last week (http://www.marketwatch.com/story/ftse-100-heads-for-1-month-low-as-trump-ups-the-ante-in-north-korea-standoff-2017-08-11) was spurred by a war-of-words between U.S. President Donald Trump and North Korean leader Kim Jong Un, which fueled fears of military action on both sides. However, on Sunday U.S. Secretary of Defense Jim Mattis and Secretary of State Rex Tillerson wrote the Trump administration was seeking diplomatic solutions (http://nation.foxnews.com/2017/08/13/mattis-and-tillerson-were-holding-pyongyang-account) to seek the "irreversible denuclearization" of North Korea.
Additionally, national security adviser H.R. McMaster and Central Intelligence Agency Director Mike Pompeo agreed that a conflict is avoidable and that an attack by North Korea doesn't appear imminent.
"The geopolitical tensions that have been driving traders into safe haven assets in recent days seem to be dissipating a touch this morning as it seems that tensions could be about to wane," said Richard Perry, market analyst at Hantec Markets, in a note.
Stock movers: Miners, which are sensitive to geopolitical issues, were among biggest advancers in London on Monday. Shares of Glencore PLC (GLEN.LN) rose 2%, Anglo American PLC (AAL.LN) added 0.9% and Rio Tinto PLC (RIO) (RIO) (RIO) gained 0.8%.
Energy companies, on the other hand, declined as oil prices slumped as concerns over rising OPEC production continued to grip the market. Shares of Royal Dutch Shell PLC (RDSB.LN) (RDSB.LN) fell 0.5%, while Tullow Oil PLC (TLW.LN) gave up 0.6%. BP PLC shares (BP.LN) (BP.LN) were down 0.1%.
(END) Dow Jones Newswires
August 14, 2017 04:36 ET (08:36 GMT)