FTSE slow out of gate as oil price rallies

Market report Emma Newlands

Oil prices surged ahead of a key meeting of the Organisation of the Petroleum Exporting Countries (Opec). Towards the end of the session, Brent crude was up 2 per cent to $74.452.

The price rise followed news that Venezuela has started shutting down oil production, and after China included energy imports in its list of tariffs against the US. Markets across Europe were off to a slow start for the week, with the FTSE 100 edging down 2.58 points to 7,631.33.

Fiona Cincotta, senior market analyst at City Index, commented: “The strong oil sector, in addition to the weaker pound meant the FTSE was faring better than its European peers as trade war fears weighed on sentiment.”

In currency markets, the pound was flat against the euro, and fell 0.26 per cent against the US dollar to $1.324 after data pointed to a cooling in UK house prices, up by just 0.4 per cent this month.

Shares in CYBG and Virgin Money fell – by 2.2p to 304p and 7.7p to 347.3p respectively – as the two agreed terms for a £1.7 billion takeover deal.

The Sainsbury’s-asda merger was also in the spotlight again after the Competition and Markets Authority published a summary of responses. Respondents suggested the £12bn deal could result in higher prices and reduced choice for consumers and Sainsbury’s shares closed the day down 0.4p to 310p.

The biggest risers on the FTSE 100 included RSA Insurance Group, up 15.8p to 667.8p, and Evraz, up 8.6p to 538.2p. The biggest fallers included Ocado Group, down 81p to 959p, and Rolls-royce, down 22.6p to 927.4p. The Indiafocused online fashion clothing retailer surged after revealing a £24 million twoyear deal with Hindustan Times owner HT Media. Shares fell despite the packaging firm reporting an 11 per cent jump in profits thanks to earlier acquisitions and online shopping growth.