(Sharecast News) - London stocks edged higher in early trade on Monday, with heavyweights BP and Shell on the rise as oil prices jumped again, as investors continued to monitor the Russia-Ukraine conflict.
At 0840 GMT, the FTSE 100 was up 0.3% at 7,429.45, while oil prices surged following attacks on oil facilities in Saudi Arabia.
Victoria Scholar, head of investment at Interactive Investor, said: "After a mixed session in Asia with the Hang Seng in Hong Kong underperforming, European markets have opened the week mixed with the oil and gas sector outperforming. The FTSE 100 is hugging the flatline, trading just north of round number support at 7,400. US futures are pointing to a weaker start, after the major averages logged their best week since November 2020 thanks to a relief rally after the Fed finally began its rate hiking path.
"Oil prices have jumped more than 3% with WTI inching closer to resistance at $110 a barrel. This month has seen the sharpest oil market volatility since 2020 at the height of the pandemic, when the commodity became technically worthless.
"Monday's sharp rally is being driven by ongoing constrained supply from OPEC+, a stalemate in peace talks between Russia and Ukraine, a potential Russian oil embargo from the European Union and a Houthi attack on a Saudi energy terminal, all exacerbating an existing imbalance between supply and demand in the market."
On home shores, the latest data from property website Rightmove showed that asking prices for homes increased at their highest rate in almost two decades as demand vastly outstripped supply and despite soaring inflation.
Asking prices recorded between February 13 and March 12 were 10.4% higher year on year and 1.7% higher than the previous month's reading - the biggest monthly jump since 2004.
They have now broken through the £350,000 barrier for the first time as the average price hit £354,564 in March.
Rightmove said the number of prospective buyers was double the number of homes for sale, a record for the time of year.
"We forecast a less frothy market in the second half of the year, as economic headwinds lead to a more evenly balanced market, though demand will still outstrip supply," it said.
In equity markets, oil giants Shell and BP rallied as oil prices advanced.
Elsewhere, consumer products giant PZ Cussons ticked up after saying it had bought UK baby and child personal care company Childs Farm for £36.8m.
Copper miner Antofagasta was in the black after it agreed with Barrick Gold and the governments of Pakistan and Balochistan to exit the Reko Diq project.
Hargreaves Lansdown was the worst performer on the FTSE 100 after a downgrade to 'underperform' at Jefferies, while Balfour Beatty was knocked lower by a downgrade to 'underweight' at Morgan Stanley.
Outside the FTSE 350, Pendragon shares surged following a report the car dealership has rejected a secret £400m takeover approach from its largest shareholder, the Hedin Group.
Market Movers
FTSE 100 (UKX) 7,429.45 0.33%
FTSE 250 (MCX) 21,069.33 -0.41%
techMARK (TASX) 4,340.58 -0.39%
FTSE 100 - Risers
Airtel Africa (AAF) 147.70p 3.29%
Prudential (PRU) 1,094.00p 2.39%
Antofagasta (ANTO) 1,663.00p 2.21%
Glencore (GLEN) 489.30p 2.10%
BP (BP.) 366.30p 1.64%
Anglo American (AAL) 3,740.50p 1.52%
Shell (SHEL) 1,971.30p 1.52%
Burberry Group (BRBY) 1,724.50p 1.38%
Rio Tinto (RIO) 5,687.00p 1.17%
NATWEST GROUP PLC ORD 100P (NWG) 216.70p 1.17%
FTSE 100 - Fallers
Hargreaves Lansdown (HL.) 1,046.50p -2.47%
Flutter Entertainment (CDI) (FLTR) 9,412.00p -1.88%
Ocado Group (OCDO) 1,167.50p -1.81%
Aveva Group (AVV) 2,572.00p -1.49%
Entain (ENT) 1,700.00p -1.31%
Spirax-Sarco Engineering (SPX) 12,900.00p -1.30%
SEGRO (SGRO) 1,329.00p -1.23%
Halma (HLMA) 2,529.00p -1.10%
Intermediate Capital Group (ICP) 1,745.00p -1.08%
JD Sports Fashion (JD.) 149.50p -1.03%
FTSE 250 - Risers
Polymetal International (POLY) 140.15p 15.83%
Tullow Oil (TLW) 49.10p 2.87%
Syncona Limited NPV (SYNC) 184.00p 2.22%
LXI Reit (LXI) 145.00p 2.11%
Harbour Energy (HBR) 434.80p 1.92%
OSB Group (OSB) 576.50p 1.59%
ICG Enterprise Trust (ICGT) 1,182.00p 1.55%
Volution Group (FAN) 423.50p 1.44%
Investec (INVP) 461.60p 1.29%
Ultra Electronics Holdings (ULE) 3,150.00p 1.29%
FTSE 250 - Fallers
Helios Towers (HTWS) 130.20p -6.06%
Balfour Beatty (BBY) 257.00p -4.03%
IntegraFin Holding (IHP) 419.80p -3.09%
Fidelity China Special Situations (FCSS) 262.00p -2.96%
Hammerson (HMSO) 30.80p -2.87%
Genus (GNS) 3,014.00p -2.65%
Bridgepoint Group (Reg S) (BPT) 299.50p -2.60%
Ferrexpo (FXPO) 163.80p -2.44%
Baltic Classifieds Group (BCG) 146.50p -2.33%
Mitie Group (MTO) 59.40p -2.14%