FTSE 100 gains as oil stocks jump; Cineworld slumps

By Shashank Nayar

Oct 5 (Reuters)London’s FTSE 100 rose on Monday, lifted by oil stocks as crude prices jumped after doctors treating U.S. President Donald Trump for COVID-19 hinted that he was doing well, while Cineworld fell sharply after it said it was considering temporarily closing all U.S. and UK screens.

The blue-chip index .FTSE hit its highest level since Sept. 18 and was last up 0.5%, led by gains in oil majors BP BP.L and Royal Dutch Shell RDSa.L, while the mid-cap index .FTMC rose 0.8%.

“Investors are focusing on the broader picture right now with sentiment turning slightly positive on anticipation of fresh U.S. stimulus,” said David Madden, an analyst at CMC Markets. “However, traders will remain cautious until there is more clarity on the U.S. presidential election.”

The FTSE 100 was on track to post a third consecutive session of gains even as growing coronavirus fears and Brexit uncertainty kept hopes for further upside in check.

A failure to secure a post-Brexit trade deal with the European Union, coupled with the COVID-19 outbreak, could cost the UK around 134 billion pounds ($174 billion) each year in lost GDP for a decade, research by law firm Baker & McKenzie showed.

The final services PMI numbers for September showed Britain’s economy proved more resilient than initially thought despite a tightening of lockdown restrictions and an end to a temporary government subsidy for businesses.

Shares of Cineworld CINE.L slumped 30.0% after the world’s second-biggest cinema operator said it was considering temporarily closing all its screens in the United States and Britain after studios pulled major releases.

Engineering company Weir Group Plc WEIR.L gained 16.3% after it said it had agreed to sell its oil and gas division to U.S. heavy equipment maker Caterpillar Inc CAT.N for $405 million in cash.

Luxury brand Mulberry MUL.L dropped 3.0% after it reported a year to end-March loss of 14.2 million pounds ($18.4 million).

(Reporting by Shashank Nayar in Bengaluru; Editing by Subhranshu Sahu)

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