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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Investments and investor services

FTSE100 bounces back as oil tops US$50

The FTSE 100 Index was 61 points ahead at 6,246.51

The London market was in fine fettle on Friday as oil prices rose despite an inconclusive outcome to Opec talks in Vienna.

The FTSE 100 Index was 61 points ahead at 6,246.51 as the price of a barrel of Brent crude edged back above the US$50 mark.

That came despite the Middle East oil cartel failing, at a meeting in the Austria capital, to cap the amount of oil it produces.

In a statement, Opec said its members were committed to a "stable and balanced oil market."

But traders may have been focusing instead on data showing that US crude stockpiles had fallen in the past week.

Attention is now expected to switch to US jobs data later Friday.

Across the Pond, the market expectation is for a 160,000 rise in non-farm payrolls, which would match the seven-month low recorded in April.

Back in the UK, small-cap indices were in positive territory, led by stocks including Tanzania-focused mineral explorer Kibo Mining PLC (LON: KIBO).

Kibo lifted 7.1% to 5.625p as feasibility work on its Mbeya coal to power project advanced to a level where it said it could start a formal EPC-bid process for both the Mbeya power plant and the Mbeya coal mine.

Shares in urban regeneration specialist Sigma Capital Group PLC (LON:SGM) also climbed 4.9% to 93.9p as it unveiled a partnership with housing group Keepmoat Limited.

But an early blue-chip casualty was Marks & Spencer PLC (LON:MKS), which fell almost 2% in early trading before recovering to stand 0.8% down at 353.9p.

The root of the trouble? A fairly hefty downgrade by broker JP Morgan Cazenove, which rates the stock ‘underweight’.

Market preview

FTSE100 is tipped to open higher to end the week, after Asian stocks went higher overnight and as traders eye a key jobs report in the US.

The UK benchmark finished lower yesterday, by around 6 points at 6,185 as the ECB didn't rock the boat and oil cartel OPEC failed to reach consensus on an output cap, but today spreadbetters at IG Index are calling it to open around 28 higher.

The US non-farm payroll figures for May will be closely watched as they provide a clue to the state of the US economy and, which way the Fed may move at its next monetary policy meet this month.

Some commentators say it may well lead to an interest rate rise later this month,

The report is expected to see 160,000 jobs added last month, down from April's 170,000, but still below the 200,000 mark while the unemployment rate is forecast to drop to 4.9%.

Across the Pond, US stocks finished higher yesterday as traders looked to the jobs numbers, and the oil price pared earlier losses.

The benchmark Dow added 0.27% to stand at 17,838, while the S&P500 added 0.28% to 2,105. The tech heavy Nasdaq gained 0.39% to 4,971.

In Asia overnight, in Japan, the Nikkei 225 is up 0.36% to 4,971, while the Shanghai Composite Index added 0.22% to 2,931.

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