London Markets

Brent crude oil futures BRN00, +1.43% topped $60 a barrel for the first time in a year, as the yield on the 10-year U.S. Treasury TMUBMUSD10Y, 1.181% rose to an 11-month high. Expectations are building that Congress will enact at least most of the Biden administration’s $1.9 trillion coronavirus relief plan.

Anglo American AAL, +4.55% rose 4% to lead the mining sector higher, and BP BP, +3.39% shares rose nearly 3%. The broader FTSE 100 UKX, +0.99% rose 1%.

Strategists at Goldman Sachs examined the issue of how sensitive U.K. companies are to tax hikes. “With weakened public finances – and assuming a good economic /profit recovery – we could see pressure to raise taxes on corporations,” said strategists led by Sharon Bell.

What the strategists found was that for a 6% increase in the tax rate, FTSE 100 could lose 2-4% of its market cap. “We note that these figures are not large, and certainly in the near term what will matter more for U.K. stocks is the success of the vaccine rollouts and the eventual unlocking of the economy,” they said.

Barron's: Futures Rise Ahead of Another Busy Earnings Week

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Steve Goldstein

Steven Goldstein is based in London and responsible for MarketWatch's coverage of financial markets in Europe, with a particular focus on global macro and commodities. Previously, he was Washington bureau chief, directing MarketWatch's economic, political and regulatory coverage. Follow Steve on Twitter: @MKTWgoldstein.