FTSE 100 rises as miners gain on firmer gold prices and oil retreats

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FTSE 100 rises on miners' gains

Highlights

FTSE 100 rises 0.6% to 10,746.09 by 1054 GMT as investors favor large-cap miners following 0.7% gold price increase and retreating oil prices.
Oil prices drop over 1% after President Trump indicates renewed Iran strikes are unlikely, weighing on energy stocks and easing inflation concerns.
GSK gains 1% after announcing settlement of COVID-19 and RSV vaccine patent litigation with Moderna, resolving infringement lawsuits tied to key products.

Market drivers lift blue-chip index

As reported by Reuters, the FTSE 100 is up 0.6% at 10,746.09 by 1054 GMT, while the FTSE 250 slips 0.4% as investors rotate toward large-cap miners and away from some domestic sectors.

Precious metal miners rise 3.4%, tracking a 0.7% increase in gold prices. Endeavour Mining, Antofagasta and Anglo American rank among the benchmark index's top gainers as lower oil prices ease inflation worries and reinforce demand for bullion ahead of U.S. inflation data due later this week.

Oil prices fall more than 1%, pressuring energy stocks, after U.S. President Donald Trump says renewed strikes on Iran are unlikely, even as attacks on ships near the Strait of Hormuz continue to sustain supply concerns. The household goods index is the weakest sector, down 1.1%, with homebuilders Persimmon and Barratt Redrow losing about 1.5% each.

Jobs data and stock-specific moves

Britain's jobs market cools in October, but starting salaries for permanent roles rise at a faster pace, according to a survey of recruiters published on Monday. The data enters the market just days after the Bank of England raises interest rates by a quarter-point to 4%, with policymakers warning that at least one more increase is likely if the U.S.-Iran conflict continues.

Traders are pricing in at least two 25 basis-point rate increases in 2027, according to LSEG data. Among individual shares, GSK adds 1% after the drugmaker says on Friday it settled patent litigation with Moderna tied to COVID-19 vaccines Spikevax and mNEXSPIKE, as well as RSV vaccine mResvia, ending lawsuits that alleged the shots infringed GSK patents.

Our earlier coverage of Bank of England rate expectations noted that persistent inflation pressures and firmer UK economic data were pushing economists toward a 25-basis-point Bank Rate increase to 4.0% in November. It also highlighted forecasts for inflation staying above the BoE’s 2% target and the view that policymakers could remain cautious but ready to tighten further if price risks build.

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