This content is not available in your region

FTSE 100 at fresh six-month high as oil majors rise, Thomas Cook takes off

Access to the comments Comments
By Reuters
FTSE 100 at fresh six-month high as oil majors rise, Thomas Cook takes off
FILE PHOTO: People walk past the London Stock Exchange Group offices in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville/File Photo   -   Copyright  Toby Melville(Reuters)

(Reuters) – London’s FTSE 100 opened higher on Tuesday as oil majors surged on an imminent end to the United States’ Iran sanction waivers, while tour operator Thomas Cook jumped after a report that several bidders were interested in its assets.

The FTSE 100 rose 0.2 percent to hit a fresh 6-month high, while the FTSE 250 had eased 0.1 pct by 0717 GMT.

Shell and BP boosted the main index, rising 1.9 percent and 1.6 percent respectively, as oil prices surged on anticipation of tightened supply after the U.S. said all Iran sanction exemptions would end by May.

Airline stocks took a hit from the higher oil prices, however. Easyjet fell 2.8 percent and British Airways-owner IAG shed 1.9 percent on the main bourse, while Wizz Air lost 2.8 percent on the mid-cap index.

Precious metals miner Fresnillo slipped 3.5 percent as gold prices fell on the back of a stronger dollar and after BMO downgraded the stock on Monday.

Small-cap Thomas Cook leapt 14 percent after a Sky News report that the world’s oldest tour operator was tentatively approached by several parties regarding a takeover of its tour operating division or the entire company.

However, investors were cautious as they returned from the Easter holiday amid concerns that China may tone down its stimulus measures following unexpected signs of recovery from first-quarter economic data last week.

Miners, as well as Asia-exposed heavyweight HSBC, fell.

(Reporting by Yadarisa Shabong and Shashwat Awasthi in Bengaluru; Editing by Kirsten Donovan)