UK's FTSE 100 steadies after worst week since April as miners gain

On Monday, the UK's FTSE 100 index steadied after its most significant weekly decline since April last year, with mining shares driving gains and oil prices remaining stable. The blue-chip index climbed 0.19% to 10,481.20 points at 10:18 GMT, while the midcap FTSE 250 index fell 0.32% to 24,114.77 points.

Precious metal miners experienced a 0.55% rise, as prices for spot gold and silver surged by 0.35% and 2.06%, respectively. However, Brent crude futures experienced a slight decline of 0.19% to $102.04 a barrel due to increased Middle East exports and the Group of Seven nations' efforts to boost supplies. The ongoing conflict between Yemen's internationally recognized government and Iran-backed Houthis kept investors cautious.

A survey published on Monday revealed that British service firms faced heightened cost pressures in the previous month, as fuel prices soared due to the Middle East situation. Fuel prices have been under scrutiny due to their influence on inflation expectations and the Bank of England's interest rate decision. Economists at Pantheon Macroeconomics noted that energy prices have risen excessively, and a decline seems improbable for the Monetary Policy Committee (MPC) to ignore, with economists predicting a nearly 95% likelihood of a rate increase at the upcoming central bank meeting in November.

Ithaca Energy was the top performer on the FTSE 100, surging 3.5%. The company had recently agreed to acquire Suncor Energy's offshore oil assets for $842 million in upfront cash. According to AJ Bell investment director Russ Mould, the industry has long complained about the instability in the fiscal and regulatory framework for the UK's oil and gas sector, and this acquisition provides diversification. Meanwhile, investment firm 3i Group hit its lowest level since late June, declining by 4.4%.