Daily Business Live

FTSE 100 lower | Oil prices under pressure

REFRESH PAGE FOR UPDATES

5pm: FTSE flat

After spending most of the day under water, the FTSE 100 closed just less than one point below where it started at 7,168.65 ( down 0.63 points).

Miners were among the worst performers, with GlencoreAnglo AmericanAntofagasta and Rio Tinto all lower.

Abrdn and Jupiter Fund Management were also sent lower by a rating downgrade at Citi which lower its recommendation on both asset managers to ‘sell’.

“We see downside risks for almost all names, but see the biggest risk of disappointment at Abrdn and Jupiter,” Citi said in a note on the sector.

Chemring dipped even as it said the UK’s Serious Fraud Office had closed its investigation into the activities of the Technology Solutions subsidiary and associated persons.

Oxford Biomedica gained as it signed a new three-year deal which would facilitate potential future manufacturing opportunities for the AstraZeneca Covid-19 vaccine.


Global markets

Oil giants which have been propping up the FTSE 100 index may come under pressure as crude headed for its third week of declines.

Oil prices eased lower as OPEC+ stuck to its planned 648,000 barrel increase in August. Brent oil was quoted at $108.95 a barrel Friday morning, down sharply from $114.74 a barrel at the London equities close.

Wall Street closed sharply lower as the S&P 500 index delivered its worst first first-half performance in more than half a century, down a further 0.88% on the day and 20.6% over the last six months.

The Nasdaq Composite was 1.33% softer while the Dow Jones Industrial Average lost 0.82% of its value. Full story here

The latest falls in the US followed comments from Federal Reserve chairman Jerome Powell at the European Central Bank forum and broad hints at aggressive rate rises to tackle inflation.

Thursday’s key focus was last month’s core personal consumption expenditures index, the central bank’s preferred measure of inflation, which revealed personal incomes in the US had continued to grow steadily but showed spending had come in lower than expected.

Better news from China where a lifting of Covid lockdowns led to manufacturing activity expanding at its fastest in 13 months in June, buoyed by a strong rebound in output. Factories have been racing to meet recovering demand.

However, Asia’s markets took their cue from the US and the Shanghai Composite was down 0.5%, while the Hang Seng index in Hong Kong was closed for a holiday. The S&P/ASX 200 in Sydney was flat. Japan’s Nikkei 225 index was down 2%.



Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.