Footsie defies oil gloom to push upwards

Market report Perry Gourley

The London market shrugged off turbulent oil prices to push higher after telecoms giant BT heeded calls to make its Openreach division a “distinct company” within the group.

The FTSE 100 was up 13.9 points to 6,724.03, with shares in BT rising more than 3 per cent or 12.2p to 399.7p after it welcomed Ofcom’s proposals rather than face a full sell-off.

The rise on the UK’S premier index came despite a rocky day for oil prices, which slipped to their lowest levels since May.

Tony Cross of Trustnet Direct said: “Despite uncertainty caused by a slew of US earnings releases and this week’s call over monetary policy from the Federal Reserve, London has managed to break higher once again into the close.”

The oil ructions were triggered by fears that a glut could resurface on the same scale as 2014 when prices tumbled from highs above $100 a barrel.

The pound managed to recover after it fell in the wake of comments from Bank of England policymaker Martin Weale who indicated that the UK economy may require a dose of monetary stimulus next month.

In UK stocks, supermarket giant Tesco was the biggest faller after Kantar Worldpanel figures for the 12 weeks to July 17 showed a 0.7 per cent dip in sales year-on-year. Shares were off 6.6p to 155.5p. NEW YORK: The Dow Jones Industrial Average dropped 19.31 points, or 0.1 per cent, to end at 18,473.75. The Nasdaq Composite Index rose 0.24 per cent, or 12.42 points, to 5,110.05.

The S&P 500 Index was up 0.70 points, or 0.03 per cent, to finish at 2,169.18. The Aim-quoted metals firm said it plans to officially mark the first production of gold at its mine at Cononish near Stirling at a launch event in August. The property firm revealed a fall in the value of its portfolio and said its chief financial officer Soumen Das was leaving.