FTSE 100 Edges Higher Amid Mixed Sector Performance

The UK's FTSE 100 index experienced a slight increase, driven by positive sectoral performance despite losses in precious metal mining stocks. A weaker jobs market and rising house prices in September contributed to this financial trend. Company updates include BP's revised strategy and Shell's declining refining profits.

The UK's benchmark FTSE 100 began the week on a positive trajectory, buoyed by a broad-based rally despite disappointing performance from precious metal mining stocks. The index rose by 0.1% as of 0715 GMT, with a majority of sectoral indexes trading positively, notably led by a 0.6% increase in industrial support services.

Conversely, precious metal miners saw a 3% decline, reaching their lowest levels in nearly a month. This drop followed strong U.S. jobs data which increased speculation of a smaller rate cut in November. In Britain, the cooling job market, evidenced by slower pay growth, may offer reassurance to the Bank of England as it contemplates future borrowing costs reductions.

Additionally, the real estate sector showed robust growth, with house prices experiencing the fastest annual rise since November 2022, driven by expectations of lower borrowing costs. Meanwhile, BP has shifted its energy strategy by forgoing a target to reduce oil and gas output by 2030, as CEO Murray Auchincloss aims to restore investor confidence. Meanwhile, Shell reported a notable decline in refining profit margins and oil product trading earnings in the third quarter compared to the previous quarter.

(With inputs from agencies.)