Oil distributors are making the major gains this morning as the rising price of oil again increases the prospect of higher profit margins.
The FTSE 100 index added 28.8 points or 0.7% to 4335 within the first hour of trading while the FTSE All-Share index was up 0.6% to 2160 while the FTSE 250 index gained 0.3% to 6016.
BP is up 1.5p or 0.3% to 489.5p while Shell Transport & Trading is up 1p or 0.3% to 390.5p after the price of crude oil rose to $41.45 a barrel in New York yesterday.
Anglo American has a 45% stake in De Beers so its report of a 26% gain in first-half profit has helped Anglo American’s share price.
Japanese stocks had another bad day thanks to the big exporters Honda Motor and Canon, as the continuing rise in oil price futures is expected to hit their profit margins and raise fuel costs.
The Nikkei 225 index closed down 0.9% to 11,187, giving the Nikkei a 2.2% drop on the week.
Elsewhere in the region, LG.Philips LCD Co. shares tumbled in their debut in South Korea, which in turn lowered South Korea's Kospi index by 0.7% to 737.51 points.
And in the US yesterday, the Dow Jones closed flat at 10050 while the Nasdaq gained 14.6 points or 0.7% to 1889.IFAonline
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