Tue City brief: US, Iran, Greece and UK give lift to equities
Investors returned from the Easter break with a renewed appetite and pushed the FTSE100 up 28.31 points higher (+1.88%) at 6,961.77.
Enthusiasm was buoyed by the low key jobs report from the US on Friday which made it less likely that the Fed will increase interest rates until September rather than in June.
This combined with improving relations with Iran, a promise from Greece that it will repay its outstanding debt, and an upbeat report this morning from the CBI on the UK economy gave traders plenty of reasons to pile into equities.
Brent crude was up 0.6% at $58.46 a barrel, extending gains after jumping nearly 6% on Monday on speculation Iran may increase exports after a preliminary nuclear deal. Reports that growth in US crude stockpiles may be slowing also supported prices.
Oil stocks were in demand with Premier Oil closing at 150.8p (+12.96%), BG Group at 910.4p (+6.74%), Cairn Energy at 170p (+6.65%) and Tullow Oil at 300.3p (+5.48%) among the best performers.