FTSE 100 firms
Mid-cap Redrow boosts housebuilders
FTSE 100 stocks closed firm on Wednesday as housebuilders helped build on what would have been a flat end.
The clue-chip ticker ended up 0.04% at 7,188.
FTSE 250-listed Redrow (LON:RDW) reported house sales had risen 13% in the six months to December while pre-tax profits climbed 35%.
Its shares jumped almost 4% tp 470.5p, boosting larger rivals Persimmon (LON:PSN) – second biggest FTSE 100 gainer up 3% to 2016p - Taylor Wimpey (LON:TW.) up 2.4% to 176.2p and Barratt Developments plc (LON:BDEV) up 2.3% to 507.5p.
Meanwhile, the FTSE 250 ended up 0.3% at 18,606 and led by Ascential Group Ltd (LON:ASCL) up 4.8% at 315p.
But the FTSE AIM 100 Index dropped 0.5% to 4303 and the FTSE AIM All-Share Index down 0.3% to 897.
Some 33% of London stocks gained and 32% fell.
1445 GMT - FTSE 100 heads lower as US stocks retreat with oil
FTSE 100 sheds 27 points
Oil majors weak as crude prices fall
Miners higher, Rio Tinto up
Broker upgrade lifts RBS
2.45pm … Lower again as US stocks fall …
The Footsie dropped back to session lows in late afternoon trading as US stocks made a weak start as a drop in oil prices weighed following data yesterday showing a big jump in American Petroleum Institute reserves data.
Around 2.40pm, the FTSE 100 index was down 27 points at 7,159, just above the session low, having reversed from an opening peak of 7,193.
In opening deals on Wall Street, the Dow Jones shed 40 points, but still held on to the psychologically-important 20,000 level.
Oil prices dipped below the US$55 a barrel level after yesterday’s API data showed a jump in US crude supplies, with further official data due from the US Energy Information Administration later today.
FXTM Research Analyst Lukman Otunuga said: “The resurgence of U.S shale amid the rising oil could undermine the efforts of OPEC and Non-OPEC members in mitigating the global oversupply consequently leaving oil prices vulnerable.
“There is a threat of the OPEC production cut deal falling apart in the future if U.S shale continues to pump incessantly.”
10.45am … Footsie flat …
The FTSE 100 index was almost flat around mid morning as weakness in oil majors in tandem with a fall by crude prices countered gains in the mining sector after strong results from Rio Tinto.
Around 10.30am, the UK blue chip index was down about 2 points at 7,184, easing off the session low of 7,165.
Among the FTSE 100 gainers, Royal Bank of Scotland (LON:RBS) stood out, up 2% at 230.4p as Deutsche Bank raised its rating for the state-owned lender to ‘hold’ from ‘sell’ and raised its target price to 220p from 172p.
Broker comment also gave a lift to FTSE 250-listed funds group Aberdeen Asset Management (LON:ADN) with RBC Capital upping its rating to ‘sector perform‘ from ‘underperform’.
But on the downside, investment platform Hargreaves Lansdown (LON:HL.) succumbed to some profit-taking, down 1.2% to 1,369p after reporting a strong set of half-year numbers boosted by a much-elevated level of share dealing since the Brexit vote.
On the up after news, however, was mid cap housebuilder Redrow (LON:RDW), ahead 4% at 472p as its first-half profits jumped and it hiked its dividend,
Tech mid cap Sophos Group (LON:SOPH) also pushed higher, up almost 6% at 285.5p as it unveiled plans to acquire the commercial software arm of Invincea for up to US$120mln.
Among the small caps, Versarien (LON:VRS) leapt 25% higher to 14.75p as it launched Nanene, its own branded graphene product.
And e-commerce marketplace blur Group (LON:BLUR) gained 10% at 8.125p as it reported further improvements in underlying profit, operating costs and cash burn.
08.50am … Oils lead decline …
The FTSE 100 index fell back in early trading hit by weaker oil prices, although heavyweight mining stocks found some gains, led by a post-results advance from Rio Tinto PLC (LON:RIO).
Around 8.50am, the FTSE 100 index was down 20 points at 7,166, reversing all and more of yesterday’s 14 point rally.
Global markets were lower overnight spooked by a dip in the oil price on concerns US companies are poised to increase production after the recent rally in the price of crude.
Statistics from the American Petroleum Institute data showed stocks rose by 14.2mln barrels last week or the largest weekly gain since October.
Michael Hewson, chief market analyst at CMC Markets UK, said: “If today’s Cushing crude oil inventories are similarly strong, any hopes that OPEC producers had of $60 oil could quickly evaporate.
“It would appear that US producers, as it was expected they might be, are turning into OPEC’s biggest nightmare.”
Falls by oil majors were a big drag in London, with Royal Dutch Shell PLC (LON:RDSA) shedding 1.4% at 2,124p, and BP PLC (LON:PLC) extending yesterday’s post results falls, down 0.5% at 455p
But elsewhere with commodity stocks, miners found gains as metal prices held firm, with Rio Tinto adding 2.2% at 3,512.5p after its 2016 results beat forecasts and it boosted its returns to shareholders by more than expected.
07.00am ... Quiet start expected ...
London’s blue chips are set for a quiet start after US shares turned lower towards the end of the session.
Financial bookmakers see little change from Footsie’s overnight close of 7,186 when trading gets underway this morning.
Wall Street was spooked by a dip in the oil price on concerns US companies are poised to increase production after the recent rally in the price of crude.
Statistics from the American Petroleum Institute data showed stocks rose by 14.2mln barrels last week or the largest weekly gain since October.
The Dow Jones Industrial Average added 38 to 20,090, but had earlier hit a new all-time high at 20,155. Nasdaq and the S&P 500 both edged up a touch.
Asian stocks shrugged off the dip late in the US to record decent gains with Tokyo, Hong Kong and Shanghai all adding near to 0.5%.
Headlines
- FTSE 250 soars to record high and pound bounces back as BoE hints interest rate could rise – Daily Mail
- Twitter steps up efforts to combat abuse as user growth slows – Financial Times
- Co-op chairman refuses to rule out injecting more capital into troubled Co-op Bank as Chief Executive steps down: - Daily Telegraph
- GW Pharmaceuticals to develop oncology portfolio after cannabis medication shows promising results – Daily Telegraph
- Developers told to build houses or lose the land – The Times
- Shopkeepers happy to ring changes with Tesco merger – The Times
- Bank of England policy maker Kristin Forbes on verge of voting for rate rise – The Independent
- Lloyds apologises for distress caused by corrupt bankers in loan scam – The Independent
- Millions of lampposts across UK could be fitted with wind turbines – The Independent
- Housing market is ‘broken’, government admits in white paper – The Guardian
- Church of England: we’ll vote to block excessive boardroom pay deals – The Guardian
- Chief executive of Deutsche Bank Israel arrested over allegations of VAT misreporting – City AM
Commodities/Currencies
£/$: 1.2511 (pound up)
Gold: US$1,232 down US$3
Oil (WTI): US$51.7 down 40c