FTSE 100 edges to three-week high as oil firms gain value

London’s top financial index has inched higher after spending most of the day in negative territory during a cautious session.

Worries about the banking sector dragged on the FTSE but it was ultimately supported by gains across oil majors Shell and BP.

The FTSE 100 finished up by 0.05%, or 4.26 points, to close at 8,407.44. It took the index to its highest closing price for three weeks.

Danni Hewson, head of financial analysis at AJ Bell, said: “It was a fairly muted day for UK stocks which isn’t a bad thing given the wild swings we’ve seen on financial markets in recent weeks.

“Investors were happy to load up on energy producers BP and Shell thanks to a rebound in oil prices.

“Pharma groups GSK and AstraZeneca also provided a tonic to portfolios, yet banking stocks were firmly off the menu.”

Elsewhere in Europe the picture was broadly similar, with the other main indexes improving throughout the session, as they benefited from a positive mood in Wall Street.

The Cac 40 ended 0.27% higher for the day and the Dax index was up 0.49%.

Stateside, the main markets opened higher after traders welcomed a stronger-than-expected rise in durable goods orders, offsetting some recent concerns about US economic growth.

In currency, the pound swung back higher after two previous sessions of gains for the dollar.

The pound was 0.38% higher at 1.330 US dollars and was up 0.05% at 1.170 euros, to its highest level this week, when London’s markets closed.

In company news, shares in Asos were higher after the fast fashion group cheered early signs that its overhaul is working despite the looming potential impact of US tariffs.

The online fashion retailer said the first half of its financial year was the “strongest sign yet” that its turnaround of the business is producing results. Shares finished up 2.1% at 316.5p.

Elsewhere in retail, Marks & Spencer was weaker after it said it is still battling a cyber incident that hit contactless payments and click and collect orders.

Customers have reported issues making some payments and delays to orders since last weekend.

Marks & Spencer shares closed down 1.3% at 394.5p.

Car distribution firm Inchcape was another notable faller after it cautioned that supply from some manufacturers could be impacted by new US tariff plans and revealed a slump in sales.

The London-listed company saw shares slip by 6.8% to 645p.

Burberry shares were in the red after it was affected by weaker results from Gucci owner Kering overnight, which showed a 14% slump in sales.

The blowback hit Burberry shares although it reduced its losses heavily throughout the session. The stock closed 0.1% lower at 701.2p.

The price of a barrel of Brent crude oil was flat at 66.1 dollars (£49.68) as markets were closing in London.

The biggest risers on the FTSE 100 were Weir Group, up 100p to 2,302p, Ashtead, up 131p to 4,108p, Anglo American, up 56p to 2,155p, St James’s Place, up 20.2p to 931.2p, and Intermediate Capital, up 35p to 1,840p.

The biggest fallers on the FTSE 100 were Legal & General, down 14.4p to 236.7p, Hiscox, down 37p to 1,126p, Bunzl, down 68p to 2,318p, HSBC, down 17.9p to 827.3p, and Melrose Industries, down 7.1p to 413.8p.