FTSE 100 drifts amid oil price slump and weak US jobs data
The FTSE 100 finished 30.71 points, or 0.37%, lower to end the day at 8,232.04.
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Your support makes all the difference.London’s top financial index slipped on Tuesday amid a drag from slumping oil and metal prices.
Stocks in the Capital reduced their losses early in the afternoon but dropped back before the close in the face of weak US jobs data.
The FTSE 100 finished 30.71 points, or 0.37%, lower to end the day at 8,232.04.
The price of a barrel of Brent crude oil was down by 1.62% to 76.08 US dollars as markets were closing in London.
Danni Hewson, head of financial analysis at AJ Bell, said: “Brent crude has continued its slide downwards today, which suppressed energy giants BP, Shell, Ithaca and Harbour Energy on London markets.
“The trajectory bodes well for motorists who will be hoping for the price at the pump to respond as swiftly on the way down as it usually does when prices go up.
“It’s also a cooling breeze for UK inflation and with OPEC+ ramping up production it should be a boon to low-cost airlines like EasyJet, which has enjoyed another good day on the FTSE 100.”
In the US, sentiment was knocked by a fall in job openings to their lowest level for three years.
Across the Channel, the German Dax index was down 1.02% at the close and the Cac 40 in France ended down 0.75%.
Meanwhile, sterling edged lower following its recent strong spell against the dollar.
The pound was down 0.13% at 1.278 US dollars and was up 0.11% at 1.175 euro at market close in London.
In company news, Standard Chartered finished the session firmly lower amid fresh allegations that it facilitated billions of dollars worth of banking transactions for Iran and terrorist groups, from new court documents filed in the US.
Whistle-blowers are attempting to reopen a case against Standard Chartered with what they claim is newly uncovered evidence showing that the bank violated US and international sanctions against Iran.
The London-listed banking giant, which focuses its operations in Asian markets, said the claims are “fabricated” and underpinned by “false allegations”. Nevertheless, shares dropped by 5.31% to 735.2p as a result.
British American Tobacco (BAT) was in the red after the tobacco giant warned that waning cigarette sales in the US and the rise of illegal disposable vapes could affect its financial performance this year.
The Lucky Strike and Dunhill maker said that the economic environment was showing signs of recovery but American consumers remain stretched.
Shares in the company finished down 0.53% at 2,422p.
GSK recovered some ground after the firm saw a heavy sell-off on Monday due to a Delaware judge allowing more than 70,000 lawsuits to move forward alleging its discontinued Zantac drug caused cancer.
It disagreed with the ruling and vowed to immediately appeal but shares dropped almost a tenth on Monday as a result. However, they lifted by 1.06% to 1,615p on Tuesday as some investors bought into the stock.
The biggest risers on the FTSE 100 were National Grid, up 25.8p at 911.8p, Melrose Industries, up 15p at 629.2p, Halma, up 50p at 2,290p, EasyJet up 10.1p at 485.5p, and Severn Trent, up 49p at 2,406p.
The biggest fallers on the FTSE 100 were Fresnillo, down 48p to 568.5p, Ocado, down 29p to 353.7p, Standard Chartered, down 41.2p to 735.2p, St James’s Place, down 21p to 502p, and Anglo American, down 99.5p to 2,403.5p.