FTSE CLOSE: Footsie extends gains on oil price rally after Russia supply hint; pound slips below $1.24

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17.30: The FTSE 100 closed up 53.11 points at 7097.50 as the oil price surged above $53 on news Russian president Vladimir Putin has voiced support for a production cap.

Germany's DAX was ahead 133.2 points at 10,624.1 and France's CAC 40 rose 47.4 points to 4,497.3.

'Global markets can count Vladimir Putin as their rescuer this afternoon, as the Russian president stepped in to support the new production cap,' said Chris Beauchamp of IG.

Production focus: Oil prices jumped after Russian President Vladimir Putin said the country is ready to join a proposed cap on oil output by members of Opec

'This has provided the necessary fillip for energy prices, which had begun to wilt as the post-Opec "feel good factor" began to wear off.

'As ever, a rational assessment of the situation would note that a production freeze simply leaves the market in its current state of oversupply, with Russian output hitting over 11 million barrels a day in September.'

Jasper Lawler of CMC Markets said: 'Oil prices surged another 4% after comments from Russian officials including Russian president Putin indicated the country would be on board with cutting output to support prices in support of the decision reached by Opec.

'The official position of Opec is that it will agree specific terms within Opec before inviting other producers to join the position. In reality, Saudi Arabia likely wants to be very certain Russia will join in curtailing its output before signing the dotted line with Opec members at the official November meeting.'

He went on: 'The ongoing move higher in oil prices saw commodity-producers surge on Monday with Royal Dutch Shell top risers on the FTSE 100. Volumes were little thin since North American bond traders were off for Columbus Day in the United States and Thanks Giving in Canada.

'The UK benchmark topped 7,100, coming just shy of its record high. UK-listed firms with large foreign earnings continue to benefit from weakness in the British pound. A rebound in the price of gold helped send gold-miner Randgold to near the top of the FTSE.' 

BHP Billiton rose 34.5p to 1267p, Royal Dutch Shell rose 59.5p to 2227p, Anglo American shares jumped 21.5p to 1042.5p, and Rio Tinto rose 56p to 2732.5p.

RBS fell by 1.8 per cent or 3.3p to 178.6p after documents leaked to the BBC and Buzzfeed claimed to show that the bank was profiting from struggling businesses.

Away from the top tier index, William Hill shares closed 2.8 per cent or 8.2p higher at 302.8p after the bookmaker confirmed it is in talks with Canadian poker firm Amaya about a potential £4.6billion merger.

Shares in outsourcing firm Mitie Group rose 2.5 per cent or 4.9p to to 199p as the company announced that Ruby McGregor-Smith is to step down as chief executive, with former Cable & Wireless boss Phil Bentley replacing her by December 12.

The pound resumed its downward slide, as short positions on the currency reached record highs and fears of a 'hard Brexit' continued to spook markets.

Sterling was trading 0.4 per cent lower against the US dollar at $1.239, but was relatively flat against the euro at €1.109.

The biggest gainers on the FTSE 100 were BHP Billiton up 34.5p to 1267p, Royal Dutch Shell up 59.5p to 2227p, Shire up 127p at 5323p, and CRH up 63p to 2723p.

The biggest fallers on the FTSE 100 were Persimmon down 52p at 1701p, Taylor Wimpey down 3.9p at 143.8p, Travis Perkins down 38p at 1429p, and easyJet down 20.5p at 875.5p.

17.01: The FTSE 100 closed up 53.11 points at 7097.50.

15.00: The Footsie pushed higher in late afternoon trading as US stocks started with strong gains boosted by a rally in oil prices after bullish comments from Russia on an oil supply cut deal, while the pound was lower again following Friday’s ‘flash crash’.

With an hour and a half of trading to go in London, the FTSE 100 index was up 46.5 points, or 0.7 per cent, at 7,790.9, just below the session peak of 7,097.55, and well above the day's low of 7,024.08.

European markets were even higher, with the CAC 40 index in Paris adding 0.9 per cent and Frankfurt’s Dax 30 index gaining 1.2 per cent.

And in early trading on Wall Street, the blue chip Dow Jones Industrial Average jumped 134.7 points at 18,375.2, while the broader S&P 500 index gained 14.5 points at 2,168.2, and the tech-laden Nasdaq composite added 45.6 points at 5,338.0.

A strong recovery by oil prices gave stock markets a boost, with Brent crude jumping 1.4 per cent to $52.64 a barrel in late afternoon trading after Russian President Vladimir Putin said the country is ready to join a proposed cap on oil output by members of the Opec cartel.

Naeem Aslam, Chief Market Analyst at ThinkMarkets UK, said: ‘Traders have welcomed the news from Russia that it is ready to join other members to adopt sensible strategy to curb the supply and stabilise the price.

‘This has removed the uncertainty and now we are in (the) clear, however, it is important to keep in mind that unless we see the planned action complete, caution may (be) the best practice.'

He added: ‘If history tells us anything, it is this that these major oil players also have habit to not to respect the agreed agreement. But for now, traders are loving the news and we are seeing the price moving higher.'

US stocks also rallied as investors prepared for the start of the third quarter earnings season and scratched their heads over the bruising second US presidential debate last night.

Republican candidate Donald Trump and Democrat rival Hillary Clinton clashed most vociferously over his views on women.

Trump shrugged off a video released over the weekend in which he talked about groping women without consent, though several Republican heavyweights have now withdrawn their support for the businessman-turned-politician due to the scandal, boosting Clinton's lead in the polls.

Fawad Razaqzada, Market Analyst at Forex.com, said: ‘Soon the US election uncertainty will be out of the way and judging by the outcome of the TV debates between the two candidates so far and the opinion polls, Hillary Clinton appears poised to be the next US president.

‘Of course, a lot could still change but if Clinton wins, it is assumed that it will be business as usual for the Federal Reserve, which remains on track to resume its hiking cycle in December after a year-long pause.’

On currency markets, the dollar got a boost from the Clinton lead today, meaning sterling stayed under pressure against the US currency, dropping back below the $1.24 level again, off 0.6 per cent at $1.2361

Today’s falls followed the pound’s flash crash on Friday when it lost over 6 per cent in an instant, hitting its lowest level since May 1985 amid fears over a ‘Hard Brexit’.

Against the euro, sterling gave up earlier gains, losing 0.2 per cent at €1.1084. 

13.00: The Footsie held firm at lunchtime as gains by heavyweight commodities offset falls from banks, and with US stock seen opening higher, while the pound steadied slightly following Friday’s ‘flash crash’.

Around mid session, the FTSE 100 index was up 21.2 points, or 0.3 per cent at 7,065,6, well above the session low of 7,024.08 but still below an opening peak of 7,075.28.

European markets were stronger, with the CAC 40 index in Paris adding 0.7 per cent and Frankfurt’s Dax 30 index gaining 0.9 per cent after German exports rebounded more than expected in August, recording their biggest rise in more than six years.

US stock futures pointed to a higher open today as investors prepared for the start of the quarterly earnings season and scratched their heads over the bruising second US presidential debate last night.

Up: US stock futures pointed to a higher open today as investors prepared for the start of the quarterly earnings season and scratched their heads over the US presidential debate last night

Republican candidate Donald Trump and Democrat rival Hillary Clinton clashed most vociferously over his views on women.

Trump shrugged off a video released over the weekend in which he talked about groping women without consent, though several Republican heavyweights have now withdrawn their support for the businessman-turned-politician due to the scandal, boosting Clinton's lead in the polls.

On currency markets, the dollar got a boost from that lead, meaning sterling stayed under pressure against the US currency, down 0.2 per cent at $1.2407, although that was above lows below the $1.24 level hit earlier.

Today’s falls follow the pound’s flash crash on Friday when the pound lost over 6 per cent in an instant, hitting its lowest level since May 1985 amid fears over a ‘Hard Brexit’.

David Cheetham, Market Analyst at XTB.com, said: ‘Last week’s overnight flash crash on Thursday has raised concerns around the currency with the size and scale of the move catching many traders off guard.

‘Despite recent strong data points, investors seem unconvinced that the UK economy will not see any adverse effects in the coming months as we approach the deadline for triggering Article 50, which was announced at the Tory party conference last weekend.

‘A second consecutive week of deteriorating sentiment in the pound has seen both the net and gross short positioning fall to record lows and whilst this extreme reading may lead to a snapback and short covering rally, it would take a brave investor to try and call a bottom for sterling given the recent precipitous drop.’

Against the euro, sterling recovered some ground today, up 0.1 per cent at €1.1116.

Among equities, weakness in banking stocks was the main drag on the FTSE 100 index with the sector hit again as shares in Germany’s Deutsche Bank fell over 3 per cent after its chief executive John Cryan came away empty handed from meetings with the US Department of Justice over his bank’s potential $14billion fine.

Royal Bank of Scotland was the worst performer in London, losing 1.8 per cent, or 3.2p at 178.7p after documents leaked to the BBC claimed to show that the majority state-owned lender was deliberately causing struggling businesses in hopes of buying up assets on the cheap.

Part-state owned peer Lloyds Banking Group was also lower, off 0.5p at 52.0p as broker Citigroup cut its target price and downgraded its rating for the stock to sell. The move follows Friday's news that the Government was preparing to sell off its remaining 9.1 per cent stake in the bank to institutional investors.

And Barclays followed its banking peers lower, falling 1.7p to 172.0p.

Discount airline easyJet was also a big FTSE 100 faller again, shedding 10.5p at 885.5p after French broker Societe Generale downgraded its rating for the stock to sell from hold and chopped back its target price following the company's profit warning last week. Liberum Capital also cut its price target today for easyJet.

But strength in heavyweight mining stocks helped limit the FTSE 100’s falls, with precious metal firms Fresnillo and Randgold Resources standing out, up 23p at 1,688p and 170p at 7,145p respectively, as the price of gold bounce higher, rising 0.8 per cent to $1,259 an ounce.

And oil majors rallied in tandem with crude prices, with Brent recovering from earlier falls to gain 0.9 per cent at $52.37 a barrel – Royal Dutch Shell stood out, adding 1.5 per cent, or 31.5p at 2,199.0p.

On the second line, bookmaker William Hill was a top FTSE 250 gainer, adding 2.5 per cent or 7.6p at 302.2p after confirming it was in merger talks with Toronto-listed Amaya, owner of the PokerStars website, having rejected a joint offer from smaller UK rivals Rank Group and 888 Holdings in the summer.

And outsourcer Mitie ticked up 0.3p to 194.4p after announcing that chief executive officer Ruby McGregor-Smith will step down on December 12 to be succeeded by Phil Bentley.

10.40: The Footsie ticked higher as the morning session progressed, consolidating last week's strong gains with an advance by heavyweight miners balancing falls from banking stocks, while the pound steadied slightly following Friday’s ‘flash crash’.

Around mid morning, the FTSE 100 index was up 4.5 points at 7,048.9, well off the session low of 7,024.08 but below an opening peak of 7,075.28, treading water after Friday's 44.43 point advance.

European markets were mixed, with the CAC 40 index in Paris down 0.2 per cent but Frankfurt’s Dax 30 index adding 0.1 per cent after some upbeat German data.

Treading water: Around mid morning, the FTSE 100 index was up 4.5 points at 7,048.9, well off the session low of 7,024.08 but below an opening peak of 7,075.28

German exports rebounded more than expected in August, recording their biggest rise in more than six years and dispelling some fears that Europe's biggest economy is heading for a slowdown.

Seasonally adjusted exports rose by 5.4 per cent, the largest rise since May 2010, data from the Federal Statistics Office showed on Monday, while imports increased by 3.0 per cent.

On currency markets, sterling stayed under pressure against the dollar, dipping below $1.24 earlier, before recovering above that level to $1.2410, off 0.2 per cent.

The fresh falls followed the pound’s flash crash on Friday when it lost over 6 per cent in an instant, hitting its lowest level since May 1985.

Ipek Ozkardeskaya, Senior Market Analyst at London Capital Group, said: ‘Of course, Friday’s flash crash is not representative of the value of the sterling in the mid-term; nevertheless, the recent incident has been a good test for the currency, as it gave some visibility on the depth of the pound market and the lack of liquidity following the UK’s decision to leave the EU, yet more importantly, warned of a further downside potential on the back of the Brexit concerns.’

Against the euro, the pound was flat at €1.1101, with the single currency also weaker against a resurgent dollar, with the greenback boosted by last night’s second US presidential debate, which saw Republican candidate Donald Trump and Democrat rival Hillary Clinton clash over his views on women.

Trump shrugged off a video released over the weekend in which he talked about groping women without consent, though several Republican heavyweights have now withdrawn their support for the businessman-turned-politician due to the scandal, boosting Clinton's lead in the polls.

However reaction to the debates is likely to be limited for US investors as bond markets will be closed today for the Columbus Day holiday, although Wall Street will be open.

A slip back in oil prices also weighed in London, with Brent crude down 0.3 per cent at $51.74 a barrel amid doubts that non-Opec producers will cut output.

Weakness in selected oil stocks was a feature, with mid cap explorer Tullow Oil dropping 3 per cent, or 8.3p to 266.6p, and blue chip BP losing 1.4p at 484.7p.

Discount airline easyJet was also a big FTSE 100 faller again, shedding 25p at 871p after French broker Societe Generale downgraded its rating for the stock to sell from hold and chopped back its target price following the company's profit warning last week. Liberum Capital also cut its price target today for easyJet.

Banks were also weak again as shares in Germany’s Deutsche Bank fell over 3 per cent after its chief executive John Cryan came away empty handed from his meetings with the US Department of Justice over his bank’s potential $14billion fine.

Shares in Lloyds Banking Group shed 2.7 per cent, or 1.4p to 51.1p, while RBS fell 4.6p to 177.3p, and Barclays lost 4.0p at 169.7p.

But strength in heavyweight mining stocks helped limit the FTSE 100’s falls, with precious metal firms Fresnillo and Randgold Resources standing out, up 32p at 1,697p and 105p at 7,180p respectively, as the price of gold bounced higher, rising 0.8 per cent to $1.259 an ounce.

On the second line, bookmaker William Hill was a top FTSE 250 gainer, adding 3 per cent or 9.0p at 303.6p after confirming it was in merger talks with Toronto-listed Amaya, owner of the PokerStars website, having rejected a joint offer from smaller UK rivals Rank Group and 888 Holdings in the summer.

Outsourcer Mitie ticked up 0.5p to 194.6p after announcing that chief executive officer Ruby McGregor-Smith will step down on December 12 to be succeeded by Phil Bentley.

And Ultra Electronics rose 1.5 per cent, or 27p to 1,873p after being awarded a $34.6miliion contract by the US Department of the Navy to continue providing cyber-secure critical infrastructure solutions. 

08:30: The Footsie was easier in early trading despite overnight gains by Asia markets, consolidating last week's gain with the main focus on the weaker pound.

In opening trade, the FTSE 100 index was down 3.7 points at 7,040.7, having initially opened around 22 points higher, slipping back after Friday's 44.43 point advance. 

Overnight in Asia, China's Shanghai Composite gained 1.2 per cent and the Shenzhen Composite rose  1.53 per cent, but with markets in Hong Kong and Japan closed for public holidays the overall mood was subdued.

In focus: This morning sterling was back under $1.24 at $1.2392 - down 0.3 per cent

The main focus was on the highly anticipated second US presidential debate, which saw Republican candidate Donald Trump vow to put his Democrat rival Hillary Clinton in jail for her private email server if he is elected US leader.

Trump also shrugged off a video released over the weekend in which he talked about groping women without consent, though several Republican heavyweights have now withdrawn their support for the businessman-turned-politician due to the scandal. 

However reaction to the debates is likely to be limited for US investors as some financial markets will be closed today for the Columbus Day holiday, although Wall Street will be open. 

But politics aside, the major focus remained  on the pound after it shed 4.2 per cent last week in its worst weekly performance since the Brexit vote in late June. 

This morning sterling was back under pressure, dipping below $1.24 at $1.2392 - down 0.3 per cent.

Kathleen Brooks, analyst at City Index, said: 'There has been no respite for the pound after Friday’s flash crash. GBP/USD is back below the 1.24 mark, and momentum looks to be on the downside.'

The fresh falls follow the pound’s flash crash on Friday when it lost as much as 6.1 per cent in an instant, hitting its lowest level since May 1985.

Naeem Aslam, analyst at Think Markets, added: 'Sterling's flash crash is still very much on traders' minds as we resume another week of trading. 

'The continued devaluation of the currency has raised many questions not only for investors who have their positions in this currency, but also for the policy makers.' 

Stocks in focus in London include:  

MITIE - The firm has named Phil Bentley as its new chief executive, announcing that incumbent Ruby McGregor-Smith would be stepping down after over nine years this December. 

WILLIAM HILL - Canadian online gambling company Amaya and the British bookmaker have said they are in talks to combine in a merger of equals. 

UK company news scheduled today includes:

Trading updates: Vedanta Resources, City of London Investment Group

Finals: Surface Transforms, Waterman Group, YouGov 

Economic news scheduled today includes: 

German trade balance at 7am

Eurozone Sentix investor confidence at 9.30am