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London closes: Oil majors bend top index as CPI rises

London closes: Oil majors bend top index as CPI rises

London’s top flight index outperformed Wednesday, boosted by gains for index heavyweights BP and Royal Dutch Shell against the background of rapidly rising energy prices globally.

Along with a positive start to trading on Wall Street, the FTSE 100 ended the day with just 0.025% to 7,016.49.

The second-tier index, on the other hand, tracked the losses seen in the rest of Europe, losing 1.07% to 23,432.81.

In parallel, Brent is rising at the front by 2.94% to $ 75.75 per share. Barrel at ICE.

Sterling, meanwhile, rose 0.17% to 1.3834 against Greenback.

“Also in focus this afternoon has been a remarkable rise in oil prices, which appears to be completely unaffected by the growth concerns that continue to affect stock markets,” he said. IG Chief Market Analyst Chris Beauchamp.

“Here, too, the inflation report will come back into play, with many worried that higher energy prices will stifle the recovery, just as it seemed to gather renewed strength.”

On the note before the opening bell, the Office of National Statistics reported a jump in annual inflation in consumer prices from 2.0% in July to 3.2% in August (consensus: 2.9%).

And worse was expected to move forward, though Samuel Tombs, chief British economist at Pantheon macroeconomics, expected that things would then calm down.

Tombs predicts that the CPI would jump further over the last three months of 2021 to an average of 4.0% and 3.9% in the first quarter of 2022.

“After that, however, the headline interest rate is likely to fall fairly quickly,” he added, before returning to the bank’s 2.0% target by the end of the following year.

Also, dampening investor sentiment, data released overnight against Chinese retail sales, industrial production and investment in August all undermine market consensus.

This was particularly the case for the former, which slowed from an 8.5% year-on-year pace in July to 2.5% in August (Barclays: 6.0%).

In the stock markets, oil exploration Tullow Oil jumped higher after saying it made a profit in the first half and narrowed production instructions upwards.

Redrow ticked up after announcing an increase in year-round earnings as the homebuilder said it expects sales rates to return to historical averages over the current fiscal year.

On the backside, Trustpilot declined as the online crawl site upgraded its revenue growth guide for the year but expanded its temporary losses.

Just eat was under cosh after news that rival Deliveroo has partnered with Amazon to offer members free delivery.

Market Movers

FTSE 100 (UKX) 7,016.49 -0.25%
FTSE 250 (MCX) 23,432.81 -1.07%
techMARK (TASX) 4,632.46 -0.71%

FTSE 100 – Risers

Evraz (EVR) 607,00p 3.62%
Antofagasta (ANTO) 1,472.00p 3.12%
BP (BP.) 309.25p 3.08%
Imperial Brands (IMB) 1,557.50p 2.10%
Royal Dutch Shell ‘A’ (RDSA) 1,476.20 s 1.81%
Royal Dutch Shell ‘B’ (RDSB) 1,475.20 s 1.65%
Reckitt Benckiser Group (RKT) 5,911.00p 1.55%
Lloyds Banking Group (LLOY) 44.14 s 1.34%
Glencore (GLEN) 340.40p 1.34%
NATWEST GROUP PLC ORD 100P (NWG) 210.60p 1.20%

FTSE 100 – Fallers

Just Eat Takeaway.Com NV (CDI) (JET) 6,307.00p -4.54%
International Consolidated Airlines Group SA (CDI) (IAG) 137.12p -3,50%
Burberry Group (BRBY) 1,780.00p -3.37%
Rolls-Royce Holdings (RR.) 105.50 s -3.35%
Associated British Foods (ABF) 1,852.50 s -3.19%
Whitbread (WTB) 3,190.00p -2.89%
Entain (ENT) 1,889.00p -2.80%
InterContinental Hotels Group (IHG) 4,488.00p -2.79%
Johnson Matthey (JMAT) 2,686.00p -2.79%
Ocado Group (OCDO) 1,808.00p -2.74%

FTSE 250 – Risers

Tullow Oil (TLW) 47.56p 5.69%
Civitas Social Housing (CSH) 95.30p 3.70%
Diversified Energy Company (DEC) 115.40p 3.04%
Energean (ENOG) 788.50 s 3.00%
The Renewables Infrastructure Group Limited (TRIG) 127.40p 2.08%
Oxford Biomedica (OXB) 1,488.00p 1.92%
Greencoat UK Wind (UKW) 139.80 s 1.90%
Auction Technology Group (ATG) 1,512.00p 1.75%
888 Holdings (888) 419.00p 1.50%
RIT Capital Partners (RCP) 2,630.00p 1.35%

FTSE 250 – Fallers

Restaurant Group (RTN) 108.40p -10.56%
Trustpilot Group (TRST) 387,00p -6.61%
Lancashire Holdings Limited (LRE) 608.00p -5.74%
Beazley (BEZ) 390.00p -5.73%
Travis Perkins (TPK) 1,728,50p -5.55%
Just Eat Takeaway.Com NV (CDI) (JET) 6,307.00p -4.54%
Hiscox Limited (DI) (HSX) 867.20p -4.43%
PZ Cussons (PZC) 239.00p -3.82%
NCC Group (NCC) 290.00p -3.81%
Wetherspoon (JD) (JDW) 1,007.00p -3.73%

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