U.K. stocks closed with gains Monday, rallying alongside a recovery for U.S. stocks. The move higher came after last week’s global selloff, which handed the FTSE 100 its lowest close since December 2016. The FTSE 100 gained 1.2% to finish at 7,177.06. On Friday, the British blue-chip gauge had its lowest close since Dec. 23, 2016, as it notched a weekly drop of 4.7%. Meanwhile, U.S. stocks were rising Monday, adding to advances seen at the end of last week. The changed hands at $1.3820, down slightly from $1.3830 late Friday in New York. The FTSE 100 is highly sensitive to the pound’s swings, as about 75% of revenue for the index’s multinational companies is generated in foreign currencies. It’s also a commodities-heavy benchmark, as it features miners and oil companies.Brent and West Texas Intermediate crude CLH8, +0.61% were both up on Monday, recovering amid fresh Mideast tensions after the U.S. benchmark logged its worst weekly loss in more than a year. U.K. stocks have slumped this month as part of a wider global
market rout. Strategists have pinned the drop in part on the need for a healthy correction after a runup, as well as on rising bond yields amid signs of inflation, with the higher yields luring money out of equities. The FTSE 100 is down 4.7% so far in February, and it’s showing a drop of 1.1% over the past 12 months. Commodities-related stocks were among the big winners, as oil rallied and metals prices also saw gains.
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