FTSE 100 Climbs as Travel Stocks Jump Amid Economic Tensions

The UK's FTSE 100 index rose on Monday due to gains in travel and leisure stocks, like Trainline and EasyJet, despite pressures from falling energy shares linked to lower oil prices. The market awaits the upcoming budget announcement from the new government, contributing to business uncertainty.

The UK's FTSE 100 index experienced an uptick on Monday morning, driven primarily by substantial gains in travel and leisure shares. Online train ticket seller Trainline surged 10.5% after upgrading its financial guidance, fueling a broader rise in the sector, including boosts for EasyJet and British Airways-owner IAG due to anticipated lower fuel costs.

Despite the positive movement in the travel sector, the FTSE 100's advance was tempered by a dip in energy stocks, influenced by a significant drop in oil prices following geopolitical tensions. Energy giants BP and Shell both fell nearly 1.7%, as Israel's retaliatory actions against Iran did not disrupt Tehran's oil output, leading to a decline in crude prices.

Amidst stock market fluctuations, British business confidence has dipped to its lowest in four months. As the UK anticipates the new government's first budget, concerns about potential tax rises to fund public sector and infrastructure investments weigh heavily on investors' minds, reflecting broader market apprehensions.

(With inputs from agencies.)