UK indexes climb as oil prices retreat, banks lead gains

By Reuters News

Sept 21 (Reuters) - London shares closed higher on Monday, with banks leading gains, as risk appetite worldwide got a boost after oil prices retreated on hopes of diplomatic progress in the Middle East.

The blue-chip FTSE 100 index .FTSE rose 0.75% to 10,739.01 points after declining almost 1.5% in the previous session. The midcap FTSE 250 .FTMC climbed 1.18% to its highest level in nearly two weeks.

  • Heavyweight banks .FTNMX301010 were among the top gainers, with HSBC HSBA.L climbing 1.4%, Barclays BARC.L gaining 1.9% and Standard Chartered STAN.L rising 1.7%.

  • The Aerospace and defence sector .FTNMX502010 rose 2.8%, with Rolls-Royce RR.L gaining 3.8% and BAE Systems inching up 1.2%.

  • Copper prices rose for a fifth straight session, approaching record highs as hopes of stronger Chinese demand fueled buying. Miners Antofagasta ANTO.L and Anglo American AAL.L jumped about 3.2% and 2.9%, respectively. MET/L

  • Oil prices slid towards the psychological threshold of $100 a barrel and to their lowest in 11 days as investors hoped for diplomatic progress in resolving the Iran war ahead of this week's UN meeting. Energy stocks .FTNMX601010 were down 1.9%, with BP BP.L and Shell SHEL.L falling 2.8% and 1.4%, respectively. O/R

  • Declining crude prices also boosted travel-related companies, with airline operator IAG ICAG.L climbing 2.9%.

  • Healthcare investment firm Syncona SYNCS.L leaped 5.2% after its portfolio company Beacon Therapeutics' Phase II/III VISTA trial met the US FDA-endorsed primary endpoint for gene therapy laru-zova.

  • Craneware CRW.L plummeted 25.8% after the healthcare financial software firm cut its full-year revenue outlook.

  • Meanwhile, investors await this week's meeting between US President Donald Trump and Chinese President Xi Jinping for clues on trade relations and economic outlook.

  • "Hopes of improved relations between the world's two largest economies were boosted by U.S. Treasury Secretary Scott Bessent describing weekend discussions with Chinese officials as successful," AJ Bell investment director Russ Mould said.

  • British government bond yields eased after jumping last week, while the pound dipped around 0.2% a week after the Bank of England kept interest rates unchanged.

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