Business

FTSE 100 closes at another record high

Market trader (file picture) Image copyright Getty Images

London's FTSE 100 stock market index ended at another record high on Monday, rising 0.25%, or 19 points, to 7,454.

Commodities firms and banks were the biggest gainers.

Anglo American, Glencore, Standard Chartered, BHP Billiton and Barclays all posted rises of between 2.2% and 3.3%.

Energy shares also bolstered the index after Brent crude rose more than 2% to $52.17 a barrel.

Laith Khalaf, at Hargreaves Lansdown, said: "The UK stock market hasn't been fazed by the general election, and continues to perform strongly against a backdrop of low interest rates and an improving global economy."

"Things may be getting tougher for the UK economy this year as rising inflation and weak wage growth look set to dent consumer demand, but the Footsie dances to a different tune because so many of the companies within it are global businesses, and thus not overly reliant on domestic conditions.

"Indeed many have seen their share prices rise as a result of weaker sterling, precisely because they have international revenue streams," he added.

Oil giant BP rose by 1% and rival Royal Dutch Shell was up by 0.4%.

The rise in oil prices came after the energy ministers of Saudi Arabia and Russia jointly announced that the current agreement to cut production, which began late last year, should be extended until March 2018.

"Opec and its allies have been on manoeuvres once more, repeating their view that more production cuts are necessary in order to avoid another supply glut," said Chris Beauchamp, chief market analyst at IG.

"This has helped oil prices to move higher once more, but the cartel appears to get diminishing returns each time it announces a reduction in output."

TUI was the biggest faller in the FTSE 100, down 4.8%, after the travel company reported a loss of 308.6m euros (£261m) for the six months to the end of March, although that was an improvement on the 394.9m euro loss reported a year earlier.

The company said UK bookings remained "resilient", and the popularity of travelling to Spain, Greece and the Caribbean had helped to offset lower demand for Turkey and North Africa.

Shares in rival travel firm Thomas Cook also fell, down 3.4%.

On the currency markets, the pound rose 0.3% against the dollar to $1.292, but was down slightly at 1.176 euros.