FTSE tumbles as oil major shares fall despite bumper BP profits
The FTSE 100 moved 1.24%, or 97.54 points, lower to finish at 7,773.03.
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Your support makes all the difference.London stocks slumped into the red on Tuesday after oil majors tumbled despite the latest set of bumper profits from BP.
It came amid a nervy session across global markets as traders await fresh economic data and central bank interest rate decisions.
The FTSE 100 moved 1.24%, or 97.54 points, lower to finish at 7,773.03.
Elsewhere in Europe, the Dax fell by 1.29% and the Cac 40 decreased by 1.53% at the close.
Michael Hewson, chief market analyst at CMC Markets UK, said: “European markets have got off to a weak start to the month ahead of two important central bank rate meetings this week
“With concerns over a lacklustre rebound for the Chinese economy increasing, after weak PMI data at the weekend, and the prospect of more monetary tightening from the ECB and Federal Reserve, investors are adopting a wait and see approach ahead of Wednesday’s Fed rate decision.
“The FTSE 100 has slipped back, weighed down by the energy sector as well as lower oil and gas prices, despite BP posting a solid set of Q1 numbers.”
BP finished the session down 46.05p at 488.35p despite revealing underlying profits of just under five billion US dollars (£4 billion) for the past three months, surpassing industry expectations.
Sentiment on the firm was dampened by BP’s plan to only buy back four billion dollars of shares per year, at the lower end of its range and a blow to shareholders.
In the US, markets opened slightly lower as investors appeared tentative ahead of another potential rate hike from the Federal Reserve on Wednesday.
Meanwhile, the dollar gained against sterling as traders weigh up the potential for higher interest rates.
The pound was down 0.23% to 1.246 US dollars and fell by 0.37% to 1.134 euros at market close in London.
In company news, Pearson was the FTSE 100’s heaviest faller as concerns from US rival Chegg over the impact of artificial intelligence chatbot ChatGPT rippled through the sector.
Online learning service Chegg linked a slump in subscribers over the first quarter to the growth of AI technology.
Pearson shares fell by 133p to 754p on Tuesday as a result.
The Restaurant Group was boosted by “very encouraging” trading over the first quarter and faster-than-expected progress in its plans to cut costs.
The Wagamama owner saw shares rise by 5.8p to 46.3p as it said planned closures were ahead of schedule.
Autocue firm Videndum slid in value after it said its financial performance could be knocked by a planned film and TV writers’ strike in the US. Shares were down 72p at 713p.
The price of oil slipped further to its lowest in five weeks after weak manufacturing figures raised concerns over demand in China.
Brent crude oil decreased by 4.6% to 75.66 US dollars per barrel when the London markets closed.
The biggest risers in the FTSE 100 were Persimmon, up 72.5p at 1,386.5p, HSBC, up 20.1p at 593.9p, Sainsbury’s, up 7p at 283.4p, Ashtead, up 83p at 4,660p, and Entain, up 20.5p at 1,464.5p.
The biggest fallers were Pearson, down 133p at 754p, BP, down 46.05p at 488.35p, Relx, down 135p at 2,511p, Shell, down 109.5p at 2,342.5p, and Barclays, down 4.94p at 154.94p.