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Energy stocks fall as oil price slips

Fri close: Energy-related stocks, including Royal Dutch Shell and Weir Group, slid as the oil price tumbled with Brent crude down 0.32% to $49.06 per barrel.

Vodafone snapped an earlier rise after the company and fellow mobile network Three bought a sizeable piece of UK mobile phone spectrum.

TUI gained after JP Morgan and Jefferies lifted their target price on the stock.

Home builders Taylor Wimpey and Barratt Developments were both up on the back of new UK government funding aimed at building homes for first-time buyers on brownfield sites.

In economic figures, UK construction output rose 2.6% year-on-year in June, missing analysts’ estimates for a 3.3% gain.

Eurozone gross domestic product also missed expectations. The EU statistics office said GDP climbed 0.3% quarter-on-quarter and 1.2% year-on-year, short of forecasts for a 0.4% and 1.3% rise respectively.

Separately, Eurozone inflation fell 0.6% on the month in July but rose 0.2% year-on-year, as expected, Eurostat confirmed in its final estimate. Inflation remains well below the European Central Bank’s target of just below 2%.

The FTSE100 closed down 17.59 at 6,550.74.

The People’s Bank of China raised the value of the yuan against the dollar by 0.05% after three days of devaluations. The move came as the Bank tried to soothe the market by promising to work towards a stable currency.

Meanwhile, the Greek parliament has approved a draft third bailout of about €85bn (£61bn) after a marathon all-night session.

The proposed deal involves tax rises and spending cuts, with negotiators having on Tuesday agreed a budget with a primary deficit of 0.25% of gross domestic product (GDP) in 2015, improving to a 0.5% surplus in 2016, 1.75% in 2017 and a 3.15% surplus in 2018.

The proposal has been put to the Eurogroup for a final decision. European Commission Vice President Valdis Dombrovskis said he is hopeful of a deal.

 

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