UK Stock Market Today: The London share market is higher in early trading on Tuesday, October 13, as the decline in the price of oil adds to the confidence of investors in the European markets. The FTSE 100 index was expected to be leading the pack of gains in the major European indexes with banking stocks and political and economic data in focus for the investors. According to Reuters, the FTSE 100 index was expected to be gaining around 1 percent in the morning trade. The pan-European STOXX 600 index was up 0.44 percent to 638.44 points at 0714 GMT.
Why Is the UK Stock Market Up Today?
Lower Oil Prices Support Investor Sentiment
The fall in oil prices helped boost European equities on Tuesday as market participants considered how the attacks in Saudi Arabia would affect the energy supply and whether the additional supply would come from Russia in the form of diesel.
A sustained drop in oil prices could help ease concerns over inflation and reduce costs for transport companies and others consuming large quantities of energy. However, falling prices could adversely affect oil producers, which implies that the effect of oil prices on FTSE 100 will be different.
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Oil prices remain volatile. Oil prices had risen about 2% on Monday to $106.76 a barrel, as concerns over the Saudi Arabia attack prevailed over supply hikes that were expected. This implies that although Tuesday saw a decline in trading, prices did not decline on both days.
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