By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — Resource stocks supported a move higher for London markets Monday, with BP PLC and Royal Dutch Shell PLC following crude prices north, while banking stocks weighed on the downside.
The FTSE 100 index UK:UKX +0.92% rose 0.5% to 5,325.70, following a gain of 3.4% last week.
The resource-heavy index got a boost as commodity prices moved higher overall, with crude-oil futures for November up over 1%.
Shares of BP BP +0.90% UK:BP +1.54% rose 1.9%, while Royal Dutch Shell RDS.A +0.98% UK:RDSA +1.33% gained 1%. Essar Energy PLC UK:ESSR +1.32% added 1.3%.
Gold and other base metals prices also rose, though several metals stocks were lower following sharp gains last week. Shares of Xstrata PLC UK:XTA +1.45% fell 1%.
Shares of Antofagasta PLC UK:ANTO +0.19% were cut to underweight from equalweight at Morgan Stanley, which said share prices imply “superior returns despite [the firm’s] declining growth profile and lower return on projects.”
European leaders appeared to be moving closer to a European recapitalization plan for banks, though analysts noted with disappointment that markets would have to wait for more details on the plan. Read Merkel, Sarkozy agree to strengthen Europe banks
Banks were lower across the board, with Royal Bank of Scotland Group PLC RBS -4.19% UK:RBS -0.58% down 1.5% and HSBC Holdings PLC UK:HSBA -1.08% off 1.4%.
Away from the main index, shares of Michael Page International PLC UK:MPI -4.73% fell 5.2% after the group posted a third-quarter gross profit rise of 26.6%, but Steve Ingham, chief executive officer, noted that “markets have weakened and become more uncertain reducing our short-term visibility,” in a statement.
Barbara Kollmeyer is an editor for MarketWatch in Madrid.
