FTSE 100 movers: Energy sector out of favour; IAG, easyJet up as oil holds

(Sharecast News) - FTSE 100 (UKX) 8,000.78 0.07% Losses in the mining and oil sectors were providing a drag on London's FTSE 100 on Monday, as investors scaled back their appetite for risk in light of rising geopolitical tensions in the Middle East.

In a retaliation for a strike on the Iran consulate in Damascus, Iran launched more than 300 drones and missiles at Israel on Sunday evening, though nearly all were intercepted by air defence operations with the help from US, UK, France and Jordan.

Markets will now be watching how Israel responds. The US has warned Israel that it would not join in with any retaliatory action, while UN secretary general Antonio Guterres urged for "maximum restraint", adding: "Now is the time to defuse and de-escalate. Neither the region nor the world can afford more war."

Oil prices were heading lower as the potential impact from this weekend's tensions was seen to be limited. Brent was down 0.9% at $89.67 a barrel in morning trade. Meanwhile, gold prices were retreating after reaching fresh record highs last week, with Comex futures down 0.3% at $2,367.20 an ounce, causing some profit-taking in the precious metals sector.

London's greater exposure to the energy and mining sectors was evident on Monday, as UK-listed stocks underperformed the rest of Europe, with equity markets in Paris, Frankfurt and Milan rising between 0.7% and 1%.

Airlines easyJet and IAG were the best performers on the FTSE 100 after the impact from Middle Eastern geopolitics on oil prices wasn't as bad as feared. In contrast, energy producers BP and Shell were both tracking the price of crude lower.

Also lower was Fresnillo, the precious metals producer, with investors taking profits after the stock had soared by a third over the past month on the back of record gold prices. Others in the sector, such as Anglo American and Glencore, were also out of favour.

FTSE 100 - Risers

IMI (IMI) 1,819.00p 3.06% Beazley (BEZ) 674.50p 3.06% B&M European Value Retail S.A. (DI) (BME) 513.60p 2.51% Persimmon (PSN) 1,308.50p 2.22% BAE Systems (BA.) 1,346.00p 2.09% Weir Group (WEIR) 2,066.00p 2.07% Rolls-Royce Holdings (RR.) 411.80p 1.90% Phoenix Group Holdings (PHNX) 512.50p 1.89% Auto Trader Group (AUTO) 698.40p 1.80% Melrose Industries (MRO) 655.00p 1.74%

FTSE 100 - Fallers

BP (BP.) 528.10p -2.06% Fresnillo (FRES) 610.00p -2.01% Centrica (CNA) 131.35p -1.73% Shell (SHEL) 2,885.50p -1.67% Anglo American (AAL) 2,180.00p -0.98% National Grid (NG.) 1,029.00p -0.92% Ashtead Group (AHT) 5,744.00p -0.90% Pershing Square Holdings Ltd NPV (PSH) 4,048.00p -0.83% British American Tobacco (BATS) 2,296.00p -0.82% BT Group (BT.A) 106.55p -0.75%