Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSA.L Share News (RDSA)

  • There is currently no data for RDSA

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON MARKET CLOSE: End Of Eight-Day Rally Despite Higher Oil Prices

Tue, 16th Aug 2016 16:01

LONDON (Alliance News) - Stocks in London ended lower, with both the FTSE 100 and the FTSE 250 snapping a rally of eight consecutive sessions higher, despite the continued recovery in crude prices and a good performance from miners and oil producers.

The pound retained the gains it made against the dollar, after data showed UK inflation increased in July to the highest level since November 2014, above economists expectations, while the same from the US came in flat, in line with consensus.

The FTSE 100 ended down 0.7%, or 47.27 points, at 6,893.92. The FTSE 250 also fell 0.7%, or 120.77 points, at 17.808.50, and the AIM All-Share dropped 0.2%, or 1.16 points, at 783.50.

Data from the Office for National Statistics showed that UK consumer prices climbed 0.6% year-on-year in July, following a 0.5% rise in June. Economists had forecast inflation to remain stable at 0.5%. Month-on-month, UK consumer prices dropped 0.1%, as expected, which was the first fall in six months. In June, prices had gained 0.2%.

UK Core inflation, that excludes energy, food, alcoholic beverages and tobacco, slowed slightly to 1.3% in July from 1.4% in June, in line with economists expectations.

Sterling stood at USD1.2938 before the inflation data, but gained some ground against the dollar after the UK inflation data, quoted at USD1.3000 at the London equities close. Nevertheless, the UK currency touched a low of USD1.2864 on Monday, near the 31-year lows reached in July, when the results of the EU referendum were still fresh.

Meanwhile, the US Labor Department revealed that US consumer prices were unchanged month-on-month in July, in line with economists expectations, following an increase of 0.2% in June. On a yearly basis, US consumer prices rose 0.8% in July, slower than the 1.0% seen in June and the expected 0.9% increase. US Core prices ticked up by 0.1% in July, but it was below expectations of a flat reading from the 0.2% rise seen in June.

Federal Reserve Bank of New York President William Dudley indicated on Tuesday that the US economy has evolved in a good shape that could justify an interest rate hike as early as next month. Many market participants, though, have been saying of late that the Fed will not increase interest rates for the remainder of the year.

"We are edging closer toward the point in time where I think it will be appropriate to raise interest rates further," Dudley told Fox Business Network. Dudley added that the US presidential election, on November 8, is no factor in the timing of a potential rate hike.

"Interestingly, on the day when the Fed's Dudley has sought to raise market expectations of a rate rise in September, we have also seen the dollar lose ground across the board, with markets largely disregarding the notion that a hike will come next month," said IG analyst Joshua Mahony.

The minutes of the last Fed's Federal Open Market Committee of July 27 are scheduled to be released on Wednesday at 1900 BST.

In New York at the European equities close, stocks were down, having closed at record highs on Monday. The Dow 30 index was down 0.3%, the S&P 500 down 0.4%, and the Nasdaq Composite down 0.5%.

In mainland Europe, the CAC 40 index in Paris fell 0.8%, while the DAX 30 in Frankfurt ended 0.6% lower. The euro was quoted at USD1.1279 at the equities close, compared to USD1.1194 at the same time on Monday.

Gold was quoted at USD1,349.30 an ounce at the close, higher than the USD1,341.60 an ounce seen on Monday. Meanwhile, oil prices continued their way up on the back of continued rumours about a freeze in output. Brent oil was eyeing the USD49 line, quoted at USD48.83 a barrel at the equities close, higher than the USD48.06 a barrel seen on Monday.

This supported Royal Dutch Shell 'A' shares, up 1.0%, while BP rose 0.2%. In the FTSE 250, Cairn Energy rose 4.9%, while AMEC Foster Wheeler added 3.7%.

Miners limited the losses, with the FTSE 350 Mining sector index up 1.6%, and Antofagasta leading the gainers, 6.7% higher. The Chilean copper miner reaffirmed its production guidance, but said output is likely to be at the lower end of the range.

Antofagasta said revenue dropped to USD1.44 billion in the first six months of the year from USD1.77 billion a year earlier on the back of lower copper prices and sales volumes, pushing gross profit down to USD293.8 million from USD312.8 million.

The company said copper production over the full year will now be at the lower end of its 710,000 to 740,000 tonne target range, whilst cash costs and net cash costs will be a touch lower than previously expected.

Fellow miner BHP Billiton rose 0.2%. BHP said it entered the red in the last financial year after a steep drop in revenue caused it to report a loss from its operations and its finance costs increased, resulting in its dividend being slashed 76%.

The miner said its dividend for the full year will be 30.0 US cents per share compared to the 124.0 cents paid last year as BHP said it continued to deliver balance sheet strength and strong free cash flow. However, the company turned to a USD7.25 billion pretax loss in the financial year to the end of June from a USD8.05 billion profit in the previous year, as revenue declined to USD30.91 billion from USD44.63 billion on lower production and commodity prices.

Hochschild Mining rose 6.2%, the best mid-cap performer, after it increased its guidance for the full year and introduced an interim dividend for the first half of the year, as it turned to a substantial profit from a large loss last year.

In the UK corporate calendar Wednesday, Imperial Brands issues a trading statement, while Admiral Group, CLS Holdings, Balfour Beatty, Lookers, and Glanbia all release half-year results.

Elsewhere in the economic calendar Wednesday, the UK ILO unemployment rate is at 0930 BST, US MBA mortgage applications are at 1200 BST, while the EIA crude oil stocks data are at 1530 BST.

By Daniel Ruiz; danielruiz@alliancenews.com

Copyright 2016 Alliance News Limited. All Rights Reserved.

More News
2 Nov 2021 07:36

UPDATE 4-'Cash machine' BP boosts share buyback as profit surges

* Underlying profits reach $3.3 bln, beating forecasts* Strong trading performance boosts results* BP to acquire further $1.25 bln of shares by early 2022* Shares down 2% as company reports $2.5 bln loss to shareholders (Adds details, updates share...

Read more
2 Nov 2021 07:36

UPDATE 3-'Cash machine' BP boosts share buyback as profit surges

* Underlying profits reach $3.3 bln, beating forecasts* Strong trading performance boosts results* BP to acquire further $1.25 bln of shares by early 2022* Shares down 2% as company reports $2.5 bln loss to shareholders (Updates throughout, adds sh...

Read more
1 Nov 2021 16:25

EXECUTIVE CHANGES: TP Group CEO out as Science Group tightens grip

EXECUTIVE CHANGES: TP Group CEO out as Science Group tightens grip

Read more
1 Nov 2021 09:38

LONDON BROKER RATINGS: Upgrades for Lloyds Banking and NatWest

LONDON BROKER RATINGS: Upgrades for Lloyds Banking and NatWest

Read more
29 Oct 2021 17:05

LONDON MARKET CLOSE: NatWest weighs on FTSE 100 at end of strong month

LONDON MARKET CLOSE: NatWest weighs on FTSE 100 at end of strong month

Read more
29 Oct 2021 14:49

Big oil says up to governments at climate talks to rein in demand

LONDON, Oct 29 (Reuters) - Leaders of Europe's biggest oil and gas companies said political leaders attending U.N. climate talks that start this week must make carbon markets more effective and that only governments can effectively curb fossil fu...

Read more
28 Oct 2021 21:00

Shell to begin Norco, Louisiana, crude, gasoline, diesel unit restarts this weekend -sources

HOUSTON, Oct 28 (Reuters) - Royal Dutch Shell Plc’s storm-idled 230,611 barrel-per-day (bpd) Norco, Louisiana, plans to begin restarting the crude distillation unit (CDU), gasoline- and diesel-producing units as early as this weekend, sources fam...

Read more
28 Oct 2021 17:05

LONDON MARKET CLOSE: Weak Shell results hit FTSE; Apple earnings ahead

LONDON MARKET CLOSE: Weak Shell results hit FTSE; Apple earnings ahead

Read more
28 Oct 2021 16:58

Abdrn investment manager says would 'probably' be against Shell break-up

LONDON, Oct 28 (Reuters) - Abdrn investment manager Iain Pyle said on Thursday he would 'probably' be against a call by hedge fund Third Point to break up Royal Dutch Shell.Pyle, whose company is a top-10 investor in Shell according to Refinitiv d...

Read more
28 Oct 2021 15:59

UPDATE 4-U.S. House Democrats grill Big Oil in climate deception probe

(Recasts with testimony by oil executives)By Valerie Volcovici and Timothy GardnerWASHINGTON, Oct 28 (Reuters) - Executives from some of the world's biggest oil companies denied in U.S. congressional testimony on Thursday that they continue to misi...

Read more
28 Oct 2021 15:59

UPDATE 1-U.S. Congress puts Big Oil in the hot seat in climate deception probe

(New throughout, updates with opening of hearing, Representative Maloney comments)By Valerie Volcovici and Timothy GardnerWASHINGTON, Oct 28 (Reuters) - The U.S. Congress on Thursday opened a year's worth of investigations into whether Big Oil dec...

Read more
28 Oct 2021 15:59

UPDATE 5-U.S. House Democrats grill Big Oil in climate deception probe

(Adds quote from Representative Alexandria Ocasio-Cortez)By Valerie Volcovici and Timothy GardnerWASHINGTON, Oct 28 (Reuters) - Executives from some of the world's biggest oil companies denied in U.S. congressional testimony on Thursday that they c...

Read more
28 Oct 2021 15:59

UPDATE 3-U.S. Congress Democrats grill Big Oil in climate deception probe

(Adds analysis by committee on scant oil company lobbying for Paris Agreement, details from Republican witness)By Valerie Volcovici and Timothy GardnerWASHINGTON, Oct 28 (Reuters) - The U.S. Congress on Thursday opened a year's worth of investigati...

Read more
28 Oct 2021 15:59

UPDATE 2-U.S. Congress puts Big Oil in the hot seat in climate deception probe

(Adds comment from Republican Representative Comer)By Valerie Volcovici and Timothy GardnerWASHINGTON, Oct 28 (Reuters) - The U.S. Congress on Thursday opened a year's worth of investigations into whether Big Oil deceived Americans about its role i...

Read more
28 Oct 2021 12:24

LONDON MARKET MIDDAY: Stocks edge lower as ECB rate decision looms

LONDON MARKET MIDDAY: Stocks edge lower as ECB rate decision looms

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.