Oil price slips up as Footsie ends day flat

Market report Scott Reid

Oil prices came under pressure as nervous traders awaited news on whether the US would remain in the Iranian nuclear deal.

The uncertainty hit Brent crude, with prices sliding 1.3 per cent to about $74.54 per barrel.

The benchmark FTSE 100 closed the day down just 1.39 points at 7,565.75, while the pound fell against the dollar by 0.18 per cent to $1.353. Against the euro, the pound rose 0.27 per cent to €1.14.

David Madden, market analyst at CMC Markets UK, said: “The FTSE 100 racked up a 14-week high before turning lower. The British equity benchmark, closed on Monday for the early May bank holiday, reached a fresh multimonth high, but ran out of steam as the wider negative mood from the continent took over.”

In Germany, the Dax dropped 0.28 per cent to 12,912.21, and the Cac 40 in France was also down, falling by 0.17 per cent to 5,521.

Shire’s shares rose to the top of the FTSE 100 when it emerged Takeda had reached a takeover deal for the firm, valuing it at some £46 billion.

The boards of both firms finalised the terms of the deal, settling on an offer of £49.01 per Shire share. Takeda said it represents a premium of around 64 per cent compared with the price of its shares in late March, when rumours of Takeda’s interest began to swirl. Shire’s shares jumped 4.6 per cent by the market close. Shareholders will now need to approve the deal.

The biggest fallers on the FTSE 100 were Fresnillo, down 32p to 1,277p, British American Tobacco, down 79p to 3,809p, Sainsbury, down 5.9p to 295.4p, and WPP, down 21.5p to 1,259.5p. News of a takeover offer from CYBG which values the challenger bank at £1.6 billion saw shares in the Edinburgh-hq’d group leap. Shares slumped after US private equity firm Apollo Management announced it had walked away from pursuing a takeover of the transport giant.