Good morning. The oil price jumped above $70 a barrel for the first time in 14 months Saudi Arabia said the world’s largest crude terminal was attacked. Brent crude jumped 5pc to $70.50.
The kingdom said a storage tank at Ras Tanura in the country’s Gulf coast was targeted on Sunday by a drone from the sea. The terminal is capable of exporting roughly 6.5 million barrels a day – nearly 7pc of oil demand.
Meanwhile the FTSE 100 is set to start the week in the red as concerns over rising bond yields linger.
5 things to start your day
1) Gloomy output news for January will see economy contract by 11pc: The UK recovery will suffer its biggest setback since last April this week as the impact of the nation’s third lockdown crushes growth.
2) Confidence in service industry at 12-month high: BDO said as restaurants and shops had been given “a much needed shot of relief” by the vaccine roll-out at they prepare to re-open this Spring.
3) Linking gilts to inflation ‘may save billions’ on rescue funding: Consultant LCP claims that the UK is “missing a trick” on how it finances borrowing plans by relying heavily on fixed-rate gilts, rather than opting for inflation-linked debt.
4) Monzo backer raises £45m to fund new wave of start-ups: Passion Capital is looking for sectors that haven’t yet had their ‘Monzo moment’.
5) How A-listers are driving the hugely speculative investment craze of Spacs: The celebrity-led special purpose acquisition company fad could be heading to Britain next.
What happened overnight
Asian shares were mixed on Monday, as some indexes were lifted by hopes for a gradual global recovery after the US economic relief package passed the Senate over the weekend.
Japan’s benchmark Nikkei 225 was up 0.2pc in early trading at 28,926.03. Australia’s S&P/ASX 200 jumped nearly 1.0pc to 6,776.00, while South Korea’s Kospi shed 0.2pc to 3,020.40. Hong Kong’s Hang Seng fell 1.2pc to 3,020.40, while the Shanghai Composite fell 0.5pc to 3,483.92.
Although shares mostly rose at first, some benchmarks slipped when players sold to lock in profits.
Coming up today
Corporate: Clarkson, Direct Line, Pearson, Phoenix, Senior (Full-year results)
Economics: Andrew Bailey gives speech on economic outlook (UK), industrial production (Germany and Spain)