FTSE 100 up as energy shares decline offset China-led rally

The blue-chip FTSE 100 ended 0.2% higher, underperforming peers on the continent

UK's FTSE 100 closed higher on Thursday, though lagging its European peers as energy giants slid tracking declining crude oil prices, which offset gains from Beijing's latest pledge for more policy measures.

The blue-chip FTSE 100 ended 0.2% higher, underperforming peers on the continent. Europe's STOXX 600 and Germany's DAX closed more than 1% higher.

Heavyweight energy shares declined 4.4% as crude oil prices slipped more than 2% on a media report that Saudi Arabia will give up its price target in preparation for raising output, and as OPEC+ looked set to raise output in December.

Growing concerns of an increase in oil production from various parts of the Middle East including Saudi Arabia pulled down the price of oil, Dan Coatsworth, investment analyst at AJ Bell, noted. That's bad news for oil producers such as BP.

China will deploy "necessary fiscal spending" to meet an economic growth target of roughly 5%, leaders pledged, following a raft of aggressive central bank policy easing measures earlier in the week.

Prospects of stronger Chinese demand gave a boost to most base metal prices, which in turn helped industrial metal miners climb 4.7%.

Shares of China-exposed luxury companies climbed across Europe, with UK's Burberry adding 8.7%, while Watches of Switzerland jumped 11.1% after Deutsche Bank upgraded the stock to "buy" from hold and raised its price target.

These moves boosted the domestically-focused FTSE 250 midcap index up 1.2%.

Asia-focused lenders HSBC and Standard Chartered gained 2.1% and 5.3%, respectively, while insurer Prudential jumped 6.1%.

Domestically, a survey from the British Retail Consortium survey showed British consumers have grown gloomier over the past month following the new Labour government's removal of a welfare benefit for pensioners and warning of tax rises at next month's budget.