Oil majors and caution on Wall Street tips weak FTSE 100 into red

London’s top market had another weak session as the FTSE 100 was dragged down by the oil majors and caution on Wall Street.

BP and Shell helped to tip the FTSE into the red as their value waned on the back of crude oil prices tumbling to sixweek lows.

London was again the weakest performer of the day amid rising inflation concerns, but saw its European rivals finally join it in the red.

The FTSE 100 closed 35.24 points, or 0.48%, lower at 7,255.96 yesterday.

Michael Hewson, chief market analyst at CMC Markets, said: “European stocks have been altogether more resilient this week, with the Dax and Cac 40 once again setting new record highs today, however we have slid back heading into the close, after US markets rolled back after initially opening in positive territory.”

The German Dax decreased by 0.18% and the French Cac dropped by 0.21%

Mr Hewson added: “The FTSE 100’s struggles continued today, this time feeling the effects of GlaxoSmithKline going ex-dividend, while weakness in BP and Royal Dutch Shell, due to the slide in oil prices overnight, has acted as another significant drag on overall sentiment.”

Speculation that the US, Japan and China could come together in an effort to keep a lid on prices meant that Brent crude dropped to 80.30 dollars a barrel at the close, from 81.58.

The pound was 0.14% higher versus the weakening US dollar at 1.347, and flat against the euro at 1.191, after a strong recent spell against the eurozone currency.

Housebuilders were among the day’s strongest performers as they were boosted by a strongerthan-expected showing from Crest Nicholson.

Elsewhere in company news, Royal Mail hit the top of the FTSE 100 after it revealed it will hand out £400 million to shareholders following a bumper period during the Covid-19 crisis.

Shares in the delivery giant leapt by 42.7p to 480.7p at the end of trading as revenues jumped from £5.7 billion to £6.1 bn.

“European stocks have been more resilient this week