FTSE 100 Gains on Oil Stocks Increase; Deliveroo dives to an all-time high

Britain’s FTSE 100 rose on Monday, with widespread gains driven by oil stocks following higher crude prices, while shares of Deliveroo fell to a record low amid concerns over a move by the ‘Union on concert workers. The commodity-rich FTSE 100 index gained 0.9%. Oil majors BP and Royal Dutch Shell added nearly 2% each as crude prices surged after Saudi Arabia raised official selling prices for all grades of crude.

Gains were seen across most sectors, as sentiment stabilized after a volatile start to December dominated by fears about the new variant of the Omicron coronavirus and the increasingly hawkish outlook from the U.S. Federal Reserve. A health official in South Africa said the first observations of children sick with COVID-19 in the country who were trained by the Omicron variant showed mild infections.

“Today is sort of a double whammy on the bullish side,” said Stuart Cole, chief macro economist at Equiti Capital. “You have stocks that are not expensive to buy and you have a reason to buy them because some of the fear that was in the last week seems to be gone.” Deliveroo plunged 6.5% to an all-time low earlier in the session. European counterparts Just Eat Takeaway and Delivery Hero also fell around 5% each, fearing that the European Commission’s proposal on labor rights and the status of workers in the odd-job economy would affect the profitability of the company. these companies.

“Essentially it’s about trying to do away with the ‘gig’ economy and making sure all employees around the world are affected by labor laws. This obviously increases costs and impacts both on the job. cost efficiency and flexibility, ”Cole said. Investors await a speech from Bank of England Deputy Governor Ben Broadbent at 11:30 GMT. Markets assess only a 33% chance of a rate hike in December after BoE policymaker Michael Saunders’ speech on Friday, down from around 75% before the announcement of the new variant.

The domestically-focused mid-cap index rose 0.7%, with chemicals company Victrex PLC adding 3.4% after reporting a 46% increase in pre-tax profit. Chemicals company Synthomer Plc fell 8.4% after a downgrade and lower price target by Morgan Stanley.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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Felix J. Dixon