MARKET REPORT
OIL prices ticked higher yesterday as investors feared a shortage in the wake of Donald Trump’s sanctions on Iran and expected hurricanes in the US.
A barrel of Brent Crude was trading at $78.7, marking a 1.8% increase, while West Texas Intermediate climbed 1.8% to $68.7 per barrel.
In currency markets, positive UK employment data and the extension of Mark Carney’s term as Bank of England governor failed to lift sterling, which ended the day 0.1% lower against the dollar at 1.300. Versus the euro, the pound was down 0.1% at 1.122.
Fresh data showed that the number of people in work continued to rise, while average earnings have grown slightly faster than inflation.
Chancellor Philip Hammond announced the sevenmonth extension to Mr Carney’s tenure. It is thought rising fears of a no-deal scenario increased the need for continuity at the top of the Bank.
Top-flight stocks in London were a shade lower, recovering from an earlier slump when it emerged that China will seek permission from the World Trade Organisation to impose sanctions on the US next week.
The FTSE 100 index clocked in at 7273.54, down 5.76 points, or 0.08%, despite the weaker pound.
Ashtead Group was the leader of the blue-chip risers. Shares closed 118p higher at 2,398p. The equipment rental firm reported a 23% jump in pre-tax profits to £274.4m for the company’s first quarter, covering the three months ending July 31. That was against revenues of £1bn, up 22% from a year earlier.
Trailing the index were tobacco companies British American Tobacco and Imperial Brands, down 2.71% and 3.34% respectively.
On the FTSE 250, sportswear chain JD Sports notched up record half-year results as profits jumped by nearly a fifth despite a tough retail market and difficult times during the heatwave. The company’s share price climbed 31.8p to 519.2p.
Debenhams shares regained some ground, rising over 6% or 0.77p to 12.27p, after a 17% plunge on Monday when it emerged the chain had appointed advisers at KPMG to consider its options.
The biggest risers on the FTSE 100 were Ashtead up 118p at 2,398, Shire up 77.5p at 4,342.5p, Rightmove up 7.3p at 487.3p and Royal Dutch Shell up 31.5p at 2,458.5p.
The biggest fallers were Imperial Brands down 90p at 2,608.5p, British American Tobacco down 99p at 3,554.5p, Fresnillo down 18.4p at 794p and Pearson down 19.8p at 866.6p.