London close: Stocks rise for fourth day as oil prices sink

2nd Nov 2026 17:20

(Sharecast News) - London's FTSE 100 finished with moderate gains for the fourth straight day on Monday, erasing earlier losses as oil prices dropped sharply on hopes of diplomatic progress in the war in Iran.

The UK benchmark index struggled for direction for most of the session, but pushed into positive territory after a strong start on Wall Street and oil prices plunged to their lowest since 15 October. The index rose 0.3% to settle at 10,761.33.

Hopes that renewed diplomatic efforts could end conflict in the Middle East sent front-month Brent crude down 7.7% to $104.74 a barrel and West Texas Intermediate down 7.3% to $96.52.

"While investors maintained a watchful stance ahead of Thursday's Bank of England interest rate decision, sentiment was buoyed by a sharp decline in crude oil prices [...] and data confirming UK manufacturing activity surged to a five-month high," said Patrick Munnelly, partner of market strategy at Tickmill Group.

"Mining and cyclical real estate stocks led top-flight gains, drawing support from a broader risk recovery as energy-driven inflationary pressures eased."

Traders were reacting to three days of talks between Iranian officials and Qatari mediators, aimed at ending the US-Iran war. Tehran also confirmed that talks with America were continuing, with Foreign Ministry spokesperson Esmaeil Baghaei telling Reuters: "I can tell you that the dialogues are continuing. However, the issue is complex."

It was also widely reported that Donald Trump was increasingly minded not to resume attacks on Iran, despite calls for further strikes from Israel's prime minister Binyamin Netanyahu.

"We have been here before of course, but it shows how ready investors are for some kind of deal that even a single headline can drive such a move," said Chris Beauchamp, chief market analyst at IG.

In macro data, S&P Global's UK manufacturing purchasing managers' index rose to 52.8 from 51.9 in September, unchanged from the flash estimate and above the 50.0 level that separates contraction from expansion.

Looking ahead to the rest of the week, the BoE is widely expected to raise interest rates by 25 basis points to 4%. This would mark the first move in the base rate of 2026. Rate decisions are also due from the Reserve Bank of Australia, Riksbank and Norges Bank.

In equity markets, Ithaca Energy, BP and Shell slipped as oil prices fell. EnQuest, Energean and Harbour Energy also lost ground.

Building products group Ibstock tumbled as it cut its full-year profit outlook after a sharp deterioration in UK brick demand, with market volumes falling around 17% year-on-year in July and August. The company now expects adjusted EBITDA in the mid-£40m range, "materially below previous expectations", after weaker sales and production cuts put further pressure on profitability.

On the upside, FirstGroup rallied as it agreed to sell five West Yorkshire depots and 330 buses to WYCA for £109m, generating an expected post-tax gain of about £30m and cash proceeds of around £55m in FY27. Separately, the group also said it has won two West Yorkshire franchise contracts covering Leeds Bramley and Huddersfield.

Ryanair flew higher after the budget airline reported a 15% decline in first-half profit after tax amid rising fuel costs and announced plans for a cost-cutting drive that will include freezing pay.

Airlines more generally were on the rise, with BA and Iberia owner IAG and Wizz Air sharply higher as falling oil prices alleviated concerns about fuel costs.

Market Movers

FTSE 100 (UKX) 10,761.33 0.29%

FTSE 250 (MCX) 24,795.85 1.40%

techMARK (TASX) 6,302.23 -0.15%

FTSE 100 - Risers

JD Sports Fashion (JD.) 96.32p 4.76%

Fresnillo (FRES) 2,337.00p 4.56%

St James's Place (STJ) 1,087.00p 4.52%

Weir (WEIR) 2,664.00p 4.23%

Kingfisher (KGF) 366.60p 4.21%

Antofagasta (ANTO) 3,253.00p 4.06%

International Consolidated Airlines Group SA (CDI) (IAG) 417.90p 3.80%

Barratt Redrow (BTRW) 334.60p 3.46%

3i Group (III) 2,528.00p 3.27%

Airtel Africa (AAF) 267.40p 3.24%

FTSE 100 - Fallers

Ithaca Energy (ITH) 284.80p -5.94%

BP (BP.) 600.00p -4.37%

Shell (SHEL) 3,921.00p -2.86%

Vodafone Group (VOD) 116.85p -1.89%

Centrica (CNA) 149.90p -1.83%

GSK (GSK) 1,824.50p -1.41%

AstraZeneca (AZN) 13,860.00p -0.99%

SSE (SSE) 2,602.00p -0.95%

Metlen Energy & Metals (MTLN) 47.58p -0.75%

Pearson (PSON) 1,293.50p -0.50%

FTSE 250 - Risers

Vistry Group (VTY) 284.00p 8.90%

FirstGroup (FGP) 232.20p 7.10%

THG (THG) 41.96p 7.10%

Johnson Service Group (JSG) 150.60p 5.17%

Taylor Wimpey (TW.) 84.18p 5.07%

Genus (GNS) 2,420.00p 5.03%

Wizz Air Holdings (WIZZ) 1,027.00p 4.96%

Berkeley Group Holdings (The) (BKG) 3,640.00p 4.60%

Bellway (BWY) 2,292.00p 4.56%

Pets at Home Group (PETS) 255.00p 4.42%

FTSE 250 - Fallers

EnQuest (ENQ) 29.75p -6.74%

Harbour Energy (HBR) 294.60p -4.35%

Oxford Nanopore Technologies (ONT) 213.00p -4.31%

Diversified Energy Company (DI) (DEC) 1,040.00p -4.24%

Energean (ENOG) 713.00p -4.10%

ASOS (ASC) 417.50p -2.91%

Clarkson (CKN) 4,976.00p -1.76%

Renishaw (RSW) 5,240.00p -1.69%

RTW Biotech Opportunities Ltd (RTW) 2.38p -1.65%

Syncona Limited NPV (SYNC) 124.60p -1.58%