FTSE 100 falls amid energy sector pressure, despite Wall Street lift

“The theme of money moving to value names from growth stocks has taken a bit of a knock

The FTSE 100 finished in the red yesterday as weakness in the energy sector and falls among commodity giants weighed on the index.

Nevertheless, the index closed the day only marginally lower after positivity in the US helped markets in Europe regain ground.

Drops from conglomerates including Associated British Foods and Glaxosmithkline also kept the FTSE lower.

London’s top index ended the day 4.65 points, or 0.06%, lower at 7,585.01 points.

Chris Beauchamp, chief market analyst at IG, said: “The pattern of the past few weeks has seen the UK’S top index make gains while US stocks struggle, something that has become quite rare in recent years.

“But that move has been reversed today, and for a second consecutive day the bevy of banks, miners and oil stocks that make up the index’s heavyweights is falling back.

“The theme of money moving to value names from growth stocks has taken a bit of a knock today, but as with the bounce in the US, it is not yet clear that today’s reversal is going to turn into anything more sustained.”

Europe’s other major markets were higher after the early sell-off was offset by an improvement in sentiment.

The German Dax increased by 0.65% and the French Cac rose by 0.3%.

Rises across Europe’s big three markets were driven by Wall Street, with the New York markets bouncing on the opening bell amid strong performances for tech stocks.

Meanwhile, sterling nudged 0.1% lower versus the US dollar to 1.364, and was flat against the euro at 1.203.

The price of oil continued its buoyant spell this week as the easing of restrictions in the UK helped boost the outlook for traders.

Brent crude increased by 0.7% to 89.06 dollars per barrel when the London markets closed.