UK indexes climb as oil prices retreat, banks lead gains

UK Indexes End Higher with Banks, Miners and Travel Stocks Leading Gains

Market Overview and Sector Performance

Sept 21 (Reuters) - London shares closed higher on Monday, with banks leading gains, as risk appetite worldwide got a boost after oil prices retreated on hopes of diplomatic progress in the Middle East.

The blue-chip FTSE 100 index rose 0.75% to 10,739.01 points after declining almost 1.5% in the previous session. The midcap FTSE 250 climbed 1.18% to its highest level in nearly two weeks.

Top Performing Sectors and Stocks

Banks and Financials

• Heavyweight banks were among the top gainers, with HSBC climbing 1.4%, Barclays gaining 1.9% and Standard Chartered rising 1.7%.

Aerospace and Defence

• The Aerospace and defence sector rose 2.8%, with Rolls-Royce gaining 3.8% and BAE Systems inching up 1.2%.

Mining and Commodities

• Copper prices rose for a fifth straight session, approaching record highs as hopes of stronger Chinese demand fueled buying. Miners Antofagasta and Anglo American jumped about 3.2% and 2.9%, respectively. [MET/L]

Energy Sector

• Oil prices slid towards the psychological threshold of $100 a barrel and to their lowest in 11 days as investors hoped for diplomatic progress in resolving the Iran war ahead of this week's UN meeting. Energy stocks were down 1.9%, with BP and Shell falling 2.8% and 1.4%, respectively. [O/R]

Travel and Leisure

• Declining crude prices also boosted travel-related companies, with airline operator IAG climbing 2.9%.

Healthcare and Technology

Healthcare Investment

• Healthcare investment firm Syncona leaped 5.2% after its portfolio company Beacon Therapeutics' Phase II/III VISTA trial met the US FDA-endorsed primary endpoint for gene therapy laru-zova.

Healthcare Technology

• Craneware plummeted 25.8% after the healthcare financial software firm cut its full-year revenue outlook.

Market Sentiment and Economic Outlook

Global Trade and Diplomatic Developments

• Meanwhile, investors await this week's meeting between US President Donald Trump and Chinese President Xi Jinping for clues on trade relations and economic outlook.

• "Hopes of improved relations between the world's two largest economies were boosted by U.S. Treasury Secretary Scott Bessent describing weekend discussions with Chinese officials as successful," AJ Bell investment director Russ Mould said.

Currency and Bond Markets

• British government bond yields eased after jumping last week, while the pound dipped around 0.2% a week after the Bank of England kept interest rates unchanged.

(Reporting by Anand Gopal in Bengaluru; Editing by Joyjeet Das and Jonathan Ananda)