FTSE 100 rises 0.29% as oil prices fall and risk appetite improves
Published on 11/02/2026 at 22:58 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSFTSE 100 closes higher on oil relief
- The FTSE 100 gained 31.55 points, or 0.29%, to close at 10,761.33 on November 2, 2026.
- Lower oil prices and hopes for progress in US-Iran talks supported risk appetite, while energy stocks declined.
- Investors also looked ahead to this week's Bank of England rate decision and assessed stronger UK manufacturing data.
The FTSE 100 ended Monday's London session at 10,761.33 points, up 31.55 points or 0.29%. The gain marked the index's fourth consecutive advance, according to Hargreaves Lansdown. The move came after a session in which the UK benchmark initially lacked direction before moving into positive territory.
Oil falls as diplomacy raises hopes
The main market catalyst was a sharp decline in crude prices. Hargreaves Lansdown reported that front-month Brent fell 7.7% to 104.74 US dollars a barrel, while West Texas Intermediate dropped 7.3% to 96.52 US dollars. Investors responded to renewed diplomatic efforts involving Iran and Qatar, alongside reports that talks between Tehran and Washington were continuing.
The decline in oil prices weighed on large energy constituents. Ithaca Energy fell 5.94%, BP lost 4.37% and Shell declined 2.86%, making them three of the FTSE 100's biggest fallers. The sector effect limited the index's advance despite broader gains elsewhere.
Cyclicals and airlines lead gains
Lower fuel costs and a wider improvement in risk appetite supported airlines and economically sensitive shares. International Consolidated Airlines Group rose 3.80%, while miners and other cyclical companies also featured among the strongest performers. JD Sports Fashion gained 4.76%, Fresnillo advanced 4.56%, St James's Place rose 4.52% and Weir increased 4.23%.
Healthcare stocks were another source of restraint. GSK declined 1.41% and AstraZeneca lost 0.99%. Earlier in the session, Reuters reported that energy and healthcare weakness was offsetting gains in broader sectors, while investors awaited the Bank of England's policy decision.
Rate decision remains in focus
UK manufacturing data also provided support for sentiment. The S&P Global UK manufacturing purchasing managers' index rose to 52.8 in October from 51.9 in September, remaining above the 50.0 threshold that separates expansion from contraction. Market participants are now preparing for the Bank of England's Thursday decision, with a 25-basis-point increase to 4% widely expected, according to the Hargreaves Lansdown report.
The FTSE 100's advance therefore reflected a mixed session: lower oil prices pressured the index's heavyweight energy shares, but helped airlines and cyclical stocks while easing some inflation concerns. The index remains sensitive to developments in the Middle East, commodity prices and the week's central-bank decisions. Further FTSE 100 coverage is available on the FTSE 100 topic page.
