DAVID MYRDDIN-EVANS
THE FTSE 100 ended marginally in the red on Monday after posting some gains earlier as a report showed that eurozone investor sentiment is improving.
This positive attitude wasn’t replicated in the oil sector, however, as Brent crude skidded to a six-year low. Royal Dutch Shell, BG Group and BP – which make up a good chunk of the index – led the decliners.
There were some strong finishers: Rolls-Royce climbed after a Sky News story revealed that its biggest shareholder ValueAct would meet with the company to try to come up with a plan to revive its fortunes.
Primark owner Associated British Foods received two broker upgrades after it repeated its outlook for the year and stated that the new financial year had started well.
In early trading on Tuesday, UK markets slipped again after Chinese exports dived more than predicted in November. The 6.8% decline was much more than the expected 5% fall and caused miners, such as BHP Billiton and Glencore, to bear the brunt of the news.
Anglo American also plunged after saying it would suspend its dividend this year. Supermarket chains swam against the tide, however, with J Sainsbury, Tesco and Morrison rising after a broker note predicted that discount chains such as Aldi would not be able to maintain their price leadership.
The FTSE 100 fell off sharply in the closing couple of days last week after holding its own until Thursday’s European Central Bank decision to not raise the asset purchase programme was met with apathy.
Equipment rental company Ashtead fell heavily after broker Exane BNP Paribas cut its outlook for the company. Costa Coffee owner Whitbread, meanwhile, received positive broker attention which boosted its shares.
Oil shares were responsible for dragging down markets on Friday after the price of crude dipped due to uncertain guidance from OPEC regarding production levels.
Royal Dutch Shell, BP and Tullow Oil all retreated as Brent crude slipped 1.8%.
Property developer Berkeley Group bucked the trend after saying it was in good shape to meet its targets for the next three years.