Top flight gains ground after unsteady start

The FTSE 100 recovered after a strong opening by the US markets helped it to bounce back from negative territory.

London’s top flight closed 53.41 points higher at 5,563.74.

The index had opened weaker as the markets were shaken by tumbling oil prices over the weekend. However, it was reassured yesterday by the UK oil majors, which saw their share prices stabilise.

Shell and BP both saw their share prices rise as traders considered the oil price slump to be only a short-term weakness. Shares in Royal Dutch Shell rose 31.4p to 1,262p, while shares in BP rose 18.1p to 323.6p.

It came after the price of crude oil plunged as the Saudi Arabiarussia price war continued to drive supply, despite travel restrictions hitting demand.

The price of a barrel of Brent crude oil decreased 13.7% to $22.23.

Europe’s two other largest markets both closed in the green, despite opening lower. The German Dax increased by 1.9%, while the French Cac moved 0.62% higher.

Across the Atlantic, the Dow Jones rallied as it continued its impressive rebound from last week.

In company news, UK housebuilding and property firms were largely in the red after many banks pulled a large portion of their mortgage products.

Easyjet shares fell 42.8p lower at 552p after the budget airline grounded its entire fleet of aircraft due to coronavirus.

Elsewhere, cruise giant Carnival also slid after it extended the suspension of some of its sailings by a month. Shares in Carnival fell 72.4p to 909.2p.