FTSE 100 heads for worst session in four years
London’s FTSE dipped below the 6,000-mark, down 260.2 points at 5927.4, adding to the gloom seen last Friday when it fell nearly 3%.
FTSE
Miners and oil stocks put brakes on FTSE
London’s top-flight was held back by another difficult session for its big oil and commodities stocks today amid a recovery in shares elsewhere. The FTSE 100 Index was 20.9 points lower at 6529.9 while Germany’s Dax and France’s Cac 40 were ahead, bouncing back from a tough few days for world markets in the previous week. Asian stocks were mixed overnight after figures showing the Japanese economy shrank in the second quarter - with Tokyo’s Nikkei ahead on hopes that it would mean more stimulus for the region’s second biggest economy.
Stocks fall as oil price hovers below $50
Blue-chip shares headed cautiously higher today after a Greek parliamentary vote approving the terms of its 85 billion euro (£61 billion) bail-out package. Sentiment over the world economic picture was also eased by a second day of China’s currency stabilising after sharp declines earlier in the week. But tepid second quarter growth figures from Europe and continued stagnation in the oil price meant the FTSE 100 Index added just 24.6 points to 6592.9, having lost more than 150 points in the last few days.
Oil declines amid commodity sell-off as China devalues currency
Oil fell amid a broader commodity decline as China’s central bank devalued its currency, making imports of raw materials more expensive in the world’s biggest consumer of metals and energy. Futures slid as much as 1.1 percent in New York. China, the world’s second-biggest oil user, cut the yuan’s reference rate by a record 1.9 percent, allowing depreciation to combat a slump in exports. The Bloomberg Commodity Index of 22 raw materials, which includes crude, metals and grains, retreated after advancing Monday by the most since February. Oil has slumped more than 25 percent since this year’s peak closing price in June amid signs the global oversupply that drove crude into a bear market will persist. The Commodity Index in July capped the biggest monthly drop since 2011 on signs of faltering demand in China and expanding gluts. The Bloomberg Dollar Spot Index gained 0.5 percent.
Brent holds losses as Iran seen exacerbating global supply glut
Brent held losses near a two-week low amid a broader rout in commodities as Iran’s plan to regain market share bolstered speculation a global glut will persist. Futures were little changed in London after falling 0.8 percent Monday. Iran is seeking to restore production once sanctions are removed regardless of the impact on prices, Oil Minister Bijan Namdar Zanganeh said. US crude stockpiles are set to remain almost 100 million barrels above the five-year seasonal average even as supplies are forecast to have dropped for a second week. Brent’s recovery from a six-year low has faltered on signs the surplus will be prolonged as Iran seeks to restore output after its nuclear accord with world powers, joining OPEC members in defending market share. The full impact of increased Iranian exports won’t be observed until 2016, banks including Citigroup Inc. predicted.
Afren suspends shares amidst financial uncertainty
Afren has suspended its shares amidst continued uncertainty over its financial position. The company said its shares were suspended by the Financial Conduct Authority at its request. It comes after an ongoing business review showed near-term production was set to be “materially lower” than previous estimates given alongside its proposed restructuring in March.
Savannah Petroleum raises $36million from share placing
Savannah Petroleum has raised $36million after placing more than 61million shares at a value of 38 pence each. The Niger focused oil and gas firm said an estimated 17,136,000 of these placing shares will be subscribed directly within the company. The placing shares represent 47% of the company’s existing ordinary share capital and will be issued in two tranches.
Naftogaz transfers $32million payment to Gazprom
Naftogaz, the Ukraine state-run company, has transferred $32million to Gazprom as a further pre-payment for gas deliveries. The company signed an interim deal last month for cheaper supplies of gas from Russia over the course of the next three months.
Hedge funds lose faith in oil rally as OPEC seen boosting supply
Speculators are losing faith in the oil rally, judging that OPEC will keep increasing supply from the highest level since 2012. Their net-long position in West Texas Intermediate crude dropped 2.1 percent, as long wagers fell the most in two months and short bets declined to the lowest since August, US Commodity Futures Trading Commission data show. OPEC’s push to defend its share of the global oil market has just begun and its members may further increase production, the International Energy Agency said May 13. Saudi Arabia said it boosted output to the highest level in at least three decades. Oil explorers in the U.S. reduced the rig count last week by the least since December, diminishing the probability that supply will contract.
Oil stocks fail to stop FTSE rise
Weakness among mining and oil stocks failed to prevent the FTSE 100 Index from creeping back towards the 7000 barrier today. The top flight was 21.1 points higher at 6994.2 following a week in which investors have been focused on the potential for higher borrowing costs following a period of turbulence in bond markets. ITV was one of the session’s big gainers as shares put back losses seen after a trading update yesterday. Positive broker comment helped the recovery as shares lifted by nearly 2%, up 4.5p to 261.85p.
Oil price eases slightly after concern about outlook for global fuel demand
Oil prices eased slightly on Thursday as weak data from the world's top economies raised concern about the outlook for global fuel demand. Uncertainty over the strength of any decline in US oil output also weighed. The larger economic picture offset data that showed a large drawdown in US crude stockpiles last week. June Brent crude was trading 10 cents down at $66.71 a barrel as of 0917 GMT. US crude for June delivery, at $60.20, was 30 cents lower.
BP boost fails to lift FTSE 100
The FTSE 100 Index has pulled back from Monday’s record high, despite a strong session for BP after the oil major’s results beat City forecasts. Investors retreated to the sidelines amid jitters over this week’s Federal Reserve meeting, when US policymakers are expected to offer guidance on when interest rates will start to rise from their rock-bottom level. The FTSE 100 Index surged to a best-ever intra-day level of 7122.7 on Monday - driven by hopes of an end to the deadlock on Greece’s debt talks - but this was followed today by a fall of 29.5 points to 7074.7.
BP profit beats estimates as refining offsets oil’s plunge
BP Plc reported first-quarter profit that was more than double analysts’ estimates as earnings from refining and trading offset lower crude prices. The first results this year from the world’s largest oil companies demonstrate the protection against lower prices gained from processing and selling fuel. France’s Total SA also reported better-than-expected earnings today. BP Chief Executive Officer Bob Dudley is setting the company up for a longer period of low oil prices by slashing spending, reviewing new projects and selling assets. Today’s results will help ensure he can maintain dividend payments until prices recover. “We are resetting and re-balancing BP to meet the challenges of a possible period of sustained lower prices,” Dudley said in the statement. “The dividend is the first priority within our financial framework.”
US stocks edge up after rise in oil
Rising oil prices helped push the US stock market mostly higher, but the gains were tiny as investors weighed mixed results from companies reporting earnings. Stocks fell shortly after the open yesterday, then headed mostly higher along with the price of oil. Chevron led the Dow Jones industrial average higher with a 2.2% gain. A jump in JPMorgan Chase after the bank reported strong first-quarter earnings also helped push the blue-chip index higher. Wells Fargo slumped after reporting that its earnings had fallen. The Dow Jones rose 59.66 points, or 0.3%, to 18,036.70. The Standard & Poor’s 500 climbed 3.41 points, or 0.2%, to 2,095.84. The Nasdaq composite fell 10.96 points, or 0.2%, to 4,977.29. Stocks have generally been rising this year, but the gains have been modest as several factors from labour strife at West Coast ports, bad weather, a slump in oil prices and a strengthening dollar have dug into earnings. A stronger currency makes profits earned overseas by US multinationals worth less when translated back to dollars.
FTSE 100 rallies after oil boost
London’s FTSE 100 Index enjoyed a strong start to the week after energy stocks were lifted by higher oil prices and expectations that US interest rates will not rise until later this year. BG Group rose 3% or 26.75p to 879.65p and Royal Dutch Shell improved 52p to 2178.5p after the price of Brent crude climbed to 57 US dollars a barrel. The mood was helped by comments from Federal Reserve policymaker William Dudley, who said that US rate increases will be “shallow”. The FTSE 100 Index rose by 81.2 points to 6914.3.
FTSE heads lower as oil prices stabilise
London’s top-flight headed lower today as oil prices stabilised but disappointing economic data from China dragged on commodity stocks. The FTSE 100 Index had been hit by a widespread sell-off in the previous session after a military flare-up in the Middle East pushed the price of a barrel of Brent crude towards $60. The index was 22.8 points lower at 6872.5 today as the oil price edged down to around $58 but overnight figures from China showed a sharp decline in industrial profits. It meant the FTSE 100 was on course for a fourth successive day of losses as the buoyant mood which saw it top the 7,000 landmark last week - and achieve further record highs at the start of this one - ebbed away.
FTSE 100 sets record high
Signs that US interest rates will rise at a slower than expected pace pushed the FTSE 100 Index to a new record in the wake of yesterday’s Budget rally. London’s top-flight reached 6982 in early trading before falling back towards it opening mark at 7.5 points higher at 6952.4. The value of London’s leading shares climbed by 1.6% on Wednesday after the Chancellor confirmed tax breaks for the beleaguered North Sea energy industry as well as a boost for house builders with help for first-time buyers.
US stocks fall as oil price continues to slide
A day after their biggest gain in six weeks, US stock indexes mostly fell yesterday as oil continued to slide and investors fretted over when the Federal Reserve will raise a key borrowing rate. Low rates have helped stocks soar over the past six years. The Fed kicked off a two-day meeting yesterday to discuss rates, and will release a policy statement today. Losses were small, but spread across industries. Nine of the 10 sectors of the Standard & Poor’s 500 index dropped, led by a 1.2% fall in raw-material companies. Randall Warren, chief investment officer of Warren Financial Service, said he is not worried about higher rates, but is bracing for more price swings nonetheless.
FTSE 100 maintains progress as oil stocks improve performance
The FTSE 100 Index has maintained its progress amid expectations that policymakers will continue efforts to support global growth. London’s top flight slumped 2.5% last week but has recovered in the past two sessions on hopes that the US Federal Reserve will signal it is no hurry to increase interest rates.
US stocks bounce back as oil closes on six-year low
US stocks bounced back yesterday after losing ground for three weeks as the dollar’s rally against the euro abated. Elsewhere in financial markets, oil closed at a six-year low, below $44 a barrel, as supplies continue to outpace demand. Treasurys gained after some mixed reports on the economy. The stock market has stumbled in recent weeks as the dollar has surged against the euro. The US currency has been rising on expectations that the Federal Reserve will start to raise interest rates even as the European Central Bank continues to provide stimulus to that region’s economy. A stronger dollar is a problem for big US companies that rely on overseas sales because it makes their goods more expensive in foreign markets and reduces the value of the profits they bring back home to the US.
Lukoil profits fall by 39%
Lukoil said profit fell 39% last year as crude prices slumped and Russia’s second-largest oil producer reported asset impairments from Kazakhstan to West Africa. Net income dropped to $4.75 billion from $7.83 billion in 2013, the Moscow-based company said in an e-mailed statement on Tuesday. Impairments of $2.34 billion were partly countered by a $1.89 billion hedging gain from oil trading. The results come after OAO Gazprom Neft posted a 31% decline in profit on Monday as oil prices plunged and a weaker ruble led to foreign-exchange losses, while OAO Novatek last week said earnings dropped 66 percent. Lukoil has cut total spending, while maintaining development deadlines for Caspian and Siberian projects.
Dividend hits Centrica shares
Centrica shares have taken a battering after the British Gas owner reported a slide in annual profits and slashed its dividend to shareholders. The decline in its share price came during a poor session for the wider market, with the FTSE 100 Index 22.1 points lower at 6875.2 amid uncertainty over a last-minute deal between Greece and its European creditors.
Conference to focus on impact of current oil market
An annual offshore decommissioning conference being held in Aberdeen later this year will focus on the impact of the current market and the resulting pressures that face the sector. Oil prices dropped to an almost six-year low of $45.19 per barrel in January, prompting job losses and project delays, but have since rallied to just over $60. The main industry body for offshore decommissioning, Decom North Sea (DNS), will host the third edition of Decom Offshore at Aberdeen Exhibition and Conference Centre on May 27.
Weaker banks hamper FTSE 100
The threat of Greece’s possible exit from the euro continued to hang over markets today during another tough session for blue-chip shares.
Shell results send FTSE 100 lower
Weaker-than-expected profits from Royal Dutch Shell triggered a sell off for oil stocks and left the FTSE 100 Index sharply lower today. The oil giant’s shares were down by more than 3% - off 77.5p to 2170.5p - despite a 12% rise in underlying profits to $3.26 billion (£2.15 billion) for the final quarter of 2014. The company, which has been hit by a sharp fall in Brent crude prices since last summer, also said it planned to cut spending by 15 billion US dollars (£9.9 billion) over the next three years.