FTSE rises as copper rally lifts miners while Hormuz uncertainty keeps oil elevated

The FTSE 100 opened higher on Monday as rising copper and silver prices lifted mining stocks, while persistent uncertainty over the reopening of the Strait of Hormuz kept energy markets on edge.

Mining giants provided much of the early support for London equities as industrial metals extended their gains, reinforcing investor optimism around demand for commodities despite a more uncertain global growth outlook.

Oil prices, meanwhile, held on to recent gains as expectations of a rapid reopening of the Strait of Hormuz faded. The strategic waterway remains a key pressure point for global energy markets, with prolonged disruption threatening to keep fuel costs elevated and complicate the inflation outlook.

The squeeze is already being felt by UK businesses. Data from the Chartered Institute of Personnel and Development points to a subdued hiring environment, with employers adopting a “low-hire, low-fire” approach ahead of official labour market figures from the Office for National Statistics on Tuesday.

The latest snapshot suggests companies remain reluctant to expand payrolls but are also avoiding large-scale redundancies, highlighting the fragile balance facing the UK economy.

Some reassurance came from Fitch, which maintained Britain’s AA- sovereign rating with a stable outlook. However, the ratings agency’s assessment leaves the economy exposed to a fresh deterioration in growth and inflation should elevated energy prices persist.

Attention is also turning to monetary policy on both sides of the Atlantic. Investors increasingly hope central banks can maintain a steadier course rather than resorting to another sharp turn higher in interest rates as energy costs threaten to reignite inflation.

That optimism was reflected in Wall Street futures, with markets positioning for a less aggressive interest-rate path.

US consumers will provide another important test this week when Walmart, Target and Home Depot report results. Their earnings are expected to offer clues about the resilience of household spending and the increasingly divided nature of the US economy.

For investors, the week begins with an uneasy combination: rising commodity prices are supporting Britain’s miners, but the same energy shock risks prolonging inflation and keeping interest rates higher for longer.