London Stocks Rise as Energy and Telecom Shares Provide Boost

London stocks inched higher Monday, supported by resources-linked stocks and BT Group. The FTSE 100 rose 0.7% while the FTSE 250 grew 0.3%. Gains were seen in energy and precious metals, while construction lagged. Investors await U.S. and UK economic data for central bank interest rate decisions.

London stocks inched higher on Monday, buoyed by broad gains, and strength in resources-linked stocks and BT Group.

The blue-chip FTSE 100 index rose 0.7% while the mid-cap FTSE 250 index gained 0.3% by 0711 GMT, after a turbulent week that ended with declines. Leading gains were personal goods, up 1.5%, driven by a 1.6% rise in Burberry.

Energy shares advanced 1% as oil prices climbed for the fifth consecutive session amidst easing U.S. recession fears and geopolitical tensions in the Middle East. Precious metal miners saw a 1.2% uptick as gold prices edged higher.

Conversely, the construction and materials sector was down 0.4%, impacted by a 3.5% drop in Marshalls after a 19% slump in its half-yearly profit. Investors are awaiting U.S. consumer price index data due Wednesday to gauge the Federal Reserve's stance on September interest rate cuts.

Weak U.S. labor market reports had stoked recession fears, triggering last week's equity selloff. However, a subsequent jobs data reading eased some concerns, helping sentiment recover. UK inflation and GDP data due this week will influence the Bank of England's next rate decision.

Among standout individual stocks, BT Group surged 6.3% after India's Bharti Enterprises agreed to acquire a 24.5% stake for about 3.2 billion pounds ($4 billion), buying out its top shareholder. BT Group topped the FTSE 100 index on the news.

(With inputs from agencies.)