Royal Mail is first class in markets

The FTSE 100 bounced back somewhat from last week’s troubled performance as housebuilders and oil majors notched up a strong Monday.

The index closed at 7,068.43, up 39.23 points compared to Friday’s score, a 0.6% rise.

CMC Markets analyst Michael Hewson said: “European markets have got off to a positive start to the week, with the energy sector helping to push the FTSE 100 back up towards the 7,100 level, with BP and Shell outperforming, as power prices surge across Europe, although it still remains some way short of reversing the losses of last week.”

Chris Beauchamp, chief market analyst at IG, said: “To all intents and purposes, it seems like we have the beginning of another market rebound.

“What might be different this time is that we are in one of the most difficult periods for stocks, SeptemberOctober usually seeing movement, but of the fleeting kind.

“Huge sell-offs are relatively rare, but even if the next few weeks follow the usual pattern stocks, might find themselves able to avoid major losses, but find it equally difficult to make much headway.”

Royal Mail sat at the top of the index after a report over the weekend that it has agreed a deal with Amazon over a click-and-collect parcel service.

Rolls-Royce, meanwhile, hovered close to the top of the index after announcing a £189 million deal to sell its stake in AirTanker Holdings – a company which helps refuel fighter jets.

FirstGroup, the transport company, said that it plans to hand back half a billion pounds to shareholders. Shares rose 3.2%.