UK's FTSE 100 Gains Amid Energy Sector Decline and China's Boost

The UK's FTSE 100 index closed 0.2% up on Thursday, largely underperforming European peers. The gains in China-exposed sectors were offset by declines in energy shares, which followed a drop in crude oil prices. China's economic policy promises spurred gains in base metals and luxury goods, while HSBC, Standard Chartered, and Prudential saw notable upticks.

The UK's FTSE 100 index closed for the day rising 0.2%, lagging behind its European counterparts due to a slump in energy giants tracking declining crude oil prices.

The STOXX 600 and Germany's DAX ended more than 1% higher while the FTSE 100 struggled with a 4.4% drop in heavyweight energy shares. The drop followed reports indicating Saudi Arabia could abandon its price target to raise oil output.

China's commitment to 'necessary fiscal spending' to achieve a roughly 5% economic growth target saw an increase in demand for base metals and benefitted luxury goods and industrial metal miners, providing some lift to the FTSE 100. Domestically, British consumer sentiment remained low amid welfare benefit cuts and anticipated tax hikes.

(With inputs from agencies.)