The UK's FTSE 100 index rose 0.4% on yesterday to close at 7,421, following a brief dip in global markets as tensions between the US and Iran eased. The easing of tensions, which had initially sparked a sharp decline in oil prices, was followed by a surge in energy stocks, particularly BP and Shell, which gained 1.2% and 1.1% respectively.
The FTSE 100 has now fallen 0.6% year-to-date, however, as investors remain cautious about the ongoing global economic uncertainty. The index is heavily influenced by the oil price, which has been volatile in recent weeks.
This week marks the beginning of earnings season in the UK, with several major companies, including BT Group and Reckitt Benckiser, due to report their quarterly results. Analysts expect a mixed performance, with some companies benefiting from cost-cutting measures and others struggling with weakened demand.
According to a recent survey by the Institute of Directors, the UK's manufacturing sector is expected to continue struggling in the coming months, with 75% of respondents predicting a decline in output.
As investors focus on this week's earnings, the UK's Chancellor, Rishi Sunak, is due to address a major economic conference in the coming days, where he is expected to outline the government's plans to boost the economy.