The FTSE 100 traded slightly higher on Monday after weaker-than-expected US employment data reduced market expectations for another Federal Reserve interest-rate increase.
The UK benchmark was up 0.11% at 03:18 ET (07:18 GMT). Elsewhere in Europe, Germany’s DAX gained 0.07%, while France’s CAC 40 fell 0.62%. Sterling declined 0.19% against the dollar to $1.3215.
US employers added 29,000 jobs in September, below expectations for an increase of 90,000, according to the Bureau of Labor Statistics. Employment figures for July and August were also revised down by a combined 60,000.
Following the report, money markets were pricing a probability of less than 25% that the Federal Reserve would raise interest rates in October.
Jefferies strategist Mohit Kumar described the employment report as “a sweet spot for risky assets”, while noting that US bond yields still ended Friday higher.
Middle East Developments Remain in Focus
Officials from Saudi Arabia, Turkey and Pakistan arrived in Riyadh on Monday under the Mecca Joint Defence Agreement, according to Pakistan’s foreign ministry. Their arrival followed an offensive launched by Yemen’s government against Iran-backed Houthis a day earlier.
Iranian Foreign Minister Abbas Araghchi said “there is no military solution” to the conflict with the United States, while Revolutionary Guards commander Ali Fadavi described oil flows through the US-supervised Hormuz route as “negligible”.
Provisional data from Kpler showed Middle East crude exports exceeded pre-war levels on four of the final seven days of September. UKMTO, however, has reported at least one tanker attack per day since 2 October.
The G7 agreed on Friday to release 100 million barrels of oil from strategic reserves, with diesel supplies front-loaded.
ING analyst Warren Patterson said the gasoil crack had narrowed to approximately $70 a barrel from $85, but added that “the only permanent solution to the tightness in middle distillate markets is getting refined products flowing from the Persian Gulf once again.”
Brent crude futures fell 0.65% to $101.59 a barrel, while US West Texas Intermediate declined 1.3% to $89.93.
Gold moved higher, with futures gaining 0.51% to $4,183.57 an ounce and spot gold rising 0.34% to $4,155.07.
UK Company Round-Up
BT Group (LSE:BT.A) acquired TalkTalk Telecommunications and PlatformX Communications out of administration in a transaction expected to have an approximately £400 million cash impact. The businesses serve around 2.5 million retail and wholesale customers. BT maintained its FY2027 outlook excluding the effects of the acquisition.
National Grid (LSE:NG.) said it expects full-year underlying earnings per share growth to be slightly above its previous guidance of 13% to 15%. National Grid Ventures and other activities are expected to contribute around £130 million more than previously anticipated in the first half, reflecting fair-value gains and higher interconnector performance.
Ithaca Energy (LSE:ITH) agreed to acquire Suncor Energy’s Canadian offshore oil assets for $860 million upfront, with up to $250 million of additional contingent consideration. The portfolio includes a 48% operated interest in Terra Nova and interests in the White Rose fields.
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