Key facts
- The FTSE 100 index was trading 0.72% higher at 10,735.56 at 2:50pm BST.
- Brent crude oil futures reached a four-month high, rising 4.07% to $108.87 a barrel.
- US stocks opened lower, with the S&P 500 down 0.59% and the Nasdaq Composite down 1.19%.
- RELX PLC and The Sage Group PLC shares each climbed more than 5%.
- Concerns over AI safety and expectations of a Federal Reserve rate hike weighed on risk appetite.
- The 30-year UK gilt yield reached 5.951%, its highest since March 1998.
London's FTSE 100 index showed resilience on Monday afternoon, trading higher despite a broader sell-off in technology stocks and weaker US futures. The index was up 77 points, or 0.72%, at 10,735.56 at 2:50pm BST, having strengthened from a near-flat open.
The gains were supported by a significant surge in oil prices, with Brent crude futures climbing 4.07% to $108.87 a barrel, reaching a four-month high. This rise was attributed to escalating Middle East tensions, including attacks on Saudi energy infrastructure and shipping, and concerns over potential supply disruptions.
Software stocks listed in London continued to rally. RELX PLC shares rose over 5% to 2,623p, and The Sage Group PLC climbed more than 5%. These gains were driven by investor welcome of calls from leading AI companies to slow the development of advanced models, easing concerns about their impact on established businesses.
Wall Street opened lower, with the S&P 500 down 0.59% and the Nasdaq Composite falling 1.19%. Nasdaq 100 futures had previously indicated losses, influenced by AI safety concerns, rising oil prices, and expectations of a Federal Reserve rate hike.
UK government bond yields also rose, with the 30-year gilt yield reaching its highest level since March 1998 at 5.951%.