Footsie rise sees it return towards 7,400

Market report Perry Gourley

The FTSE 100 rose to within touching distance of 7,400 for the first time in a month as crude oil prices climbed back over the $50 dollar mark after Iraq and Algeria signalled support to extend Opec production cuts.

The news sent BP shares higher by 4.8p to 460.55p, while Royal Dutch Shell’s “B” shares rose 27.5p to 2,168.5p, supporting a 0.6 per cent jump on the FTSE 100 which closed 43.03 points higher at 7,385.24.

Michael Hewson, chief market analyst at CMC Markets UK, said: “Crude oil prices have continued to stabilise after API inventories showed a bigger than expected fall, while Iraq and Algeria were reported to favour some form of Opec cut extension, while Saudi Arabia announced it would cut back on its exports to Asia.”

However, he cautioned that while “it wouldn’t be a surprise” to see a rebound in oil prices, it is more likely that prices will continue to hover around the $50 per barrel level.

Barclays shares ended the day up 4.65p at 209.95p after its annual general meeting where a substantial number of investors refused to back the chief executive’s reappointment after breaching the bank’s whistle blower protection rules.

Lloyds Banking Group rose 0.86p to 69.88p amid news that Noel Edmonds has launched a £50 million compensation claim over fraud at the hands of former HBOS Reading staff. ITV shares dropped 4.6p to 196.2p after the broadcasting giant said net advertising revenue dropped 9 per cent to £393 million in the first quarter, but said predictions for the full-year were unchanged. The Aberdeenbased oil and gas exploration group was in demand after announcing it had doubled its stake in a key North Sea gas area. The specialist insurance group said it is unlikely to make an underwriting profit for 2017 as it withdraws from a number of business areas.