Tum­bling oil price drags down Foot­sie

Western Morning News (Saturday) - - Uk And World News -

Lon­don’s blue-chip index was dragged slightly lower by the tum­bling price of oil as in­vestors fret that sup­ply could out­pace global de­mand.

The FTSE 100 index closed 7.46 points, or 0.1%, lower at 6,952.86 while a bar­rel of Brent crude was trad­ing down 6.2% at $58.66 (£45.76).

Laith Kha­laf, se­nior an­a­lyst at Har­g­reaves Lans­down, said the UK stock mar­ket is heav­ily in­flu­enced by com­mod­ity prices be­cause some of its big hit­ters are global oil and min­ing com­pa­nies.

Oil giants BP and Royal Dutch Shell make up about 17% of the FTSE 100, so when the price of oil de­clines the index falls.

“A fall­ing oil price partly re­flects per­ceived weak­ness in the global econ­omy, though it acts as a self-cor­rect­ing mech­a­nism, as it makes lots of eco­nomic ac­tiv­ity cheaper, and there­fore more at­trac­tive,” Mr Kha­laf said.

“For in­stance, a lower oil price will

West stocks high­lighted

re­lieve pres­sure on UK con­sumers by halt­ing the rise in fuel and heat­ing costs we have seen in re­cent months.”

France’s Cac was up 0.2% while Ger­many’s Dax rose 0.5%.

Mean­while, the pound was weaker due to a stronger dol­lar and on­go­ing un­cer­tainty sur­round­ing the UK’s de­par­ture form the Euro­pean Union.

Prime Min­is­ter Theresa May has reached a Brexit deal with the EU but is strug­gling to con­vince MPs to back it.

The pound was down 0.6% against the US dol­lar to 1.280 US dol­lars but was up 0.1% ver­sus the euro at 1.129.

The big­gest ris­ers on the FTSE 100 were Ocado up 44.40p, or 5.9%, to 794.4p, easyJet up 47p, or 4.1%, to 1,207p, Royal Mail up 12.50p, or 3.8%, to 340p, and Bri­tish Land up 17.40p, or 3%, to 606p. The big­gest fall­ers were Fres­nillo down 56p, or 7%, to 746.4p, Wood Group down 37p, or 5.9%, to 587.6p, An­glo Amer­i­can down 74.40p, or 4.5%, to 1,568.8p, and Evraz down 19.70p, or 4%, to 471.7p.

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