FTSE wobbles as oil prices drop sharply following Opec outlook
The UK’s top stock market index was down 43.38 points, or 0.52%, to close at 8,249.28.
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A sharp drop in oil prices saw miners and energy firms drag on the FTSE 100 on Tuesday, after an influential outlook for global oil demand was lowered.
The UK’s top stock market index was down 43.38 points, or 0.52%, to close at 8,249.28.
Miners Antofagasta, Glencore and Anglo American, and energy firms BP and Shell were among the biggest fallers of the day.
Markets wobbled as the price of Brent crude oil tumbled by more than 4.5% to just under 74 US dollars per barrel by the time European markets closed.
“A big decline in the oil price is welcome news for businesses and consumers as there was a moment last week when it looked like energy and transport bills could go through the roof,” said Russ Mould, investment director at AJ Bell.
“The trigger was a report yesterday from Opec which lowered its outlook for global oil demand growth this year and next.
“The drop in the oil price acted as a drag on the FTSE 100, with oil and gas producers BP and Shell and commodities trader Glencore among the biggest fallers.”
Oil prices have been volatile in recent weeks in response to escalating tensions in the Middle East and fears over how conflict could impact energy sites in the region.
Meanwhile, investors were in low spirits over in Paris where the Cac 40 dropped 1.05% at close. In Frankfurt, the Dax dipped 0.11%.
In New York, after markets had closed in Europe, the S&P 500 was down about 0.5%, while Dow Jones was about 0.4% lower.
The pound was up around 0.2% against the US dollar at 1.31, and 0.3% higher against the euro at 1.2.
In company news, shares in De La Rue jumped after the bank note printer announced plans to sell its authentication arm in a deal worth £300 million.
The Basingstoke-based company revealed the proposed sale to US-based firm Crane NXT, which it said could help it repay a loan due in July next year.
De La Rue put its divisions up for sale after a strategic review launched at the end of last year. Shares in the firm closed 14.4% higher.
Elsewhere, shares in Bellway were also given a boost despite the housebuilder revealing that its profits tumbled by more than half over the past year as it grappled with slower demand in the housing market.
Nevertheless, the company said it expects to complete the sale of more homes this year as easing mortgage rates have started to support more demand.
This more optimistic outlook appeared to have pleased investors and its share price was 8.3% higher at close.
The biggest risers on the FTSE 100 were IAG, up 8.15p to 206.9p, Persimmon, up 61p to 1,662p, easyJet, up 15.8p to 518p, Barratt Redrow, up 12.8p to 472p, and JD Sports, up 3.05p to 132.9p.
The biggest fallers on the FTSE 100 were Antofagasta, down 85p to 1,796.5p, Glencore, down 17p to 403.55p, BP, down 15.9p to 392.5p, Spirax, down 260p to 6,665p, and Croda, down 137p to 3,816p.