FTSE 100 hits record high after Russia and Saudi Arabia send oil prices higher
15 May, 2017, 19:35
The rise in oil prices came after Saudi Arabian and Russian ministers said agreed supply cuts should extend into 2018.
"In our view, it also suggests that they believe the global crude market ultimately easily accommodates United States shale oil production and that further USA production growth may be needed as major conventional sources of supply suffer from the extraordinary reductions in capital spending in 2014-2017".
Japan's Nikkei slipped 0.2 percent on a stronger yen.
USA energy firms have added oil rigs for a 17th week in a row, extending a 12-month drilling recovery that is expected to help boost crude production in the United States to a record high next year. A cybersecurity exchange-traded fund ISE rose at the open, while London-listed shares in cloud network security firm Sophos jumped almost 8 percent to a record high.
"At this level, there isn't too big a correlation between oil and equities but since we've seen oil fall quite a bit in a month or so, today's rally in oil is helping the market grind higher", said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
Asian shares hit a two-year high overnight and Wall Street was set to open higher, while Europe's major markets were mixed after hitting long-term highs in early trade.
In morning trade, four of the five biggest gainers on the FTSE are mining or commodity focused firms, with Chilean copper miner Antofagasta leading the way, up more than 1.7%. South Korea's KOSPI climbed 0.15 percent.
Atlantia said it would offer Abertis investors the option of €16.5 for each of their shares or a ratio of 0.697 share of the Italian manufacturing group.
As European bond markets got going on Monday, U.S. Treasury yields gained less from the oil bounce than their German equivalents.
The Canadian dollar strengthened 0.41 percent versus the greenback at 1.37 per dollar.
That in the past has been a mixed blessing for markets and the global economic outlook, and gains for European stocks were neither large nor across the board, with Paris shares drifting lower.
The euro was little changed on Monday at $1.093, holding Friday's 0.7 percent gain. France's CAC 40 was off 0.1% at 5,399.69.