London close: FTSE closes lower on falling oil prices

The FTSE 100 closed in the red on Wednesday as falling in oil prices weighed on sentiment.

London stocks failed to maintain the rebound earlier in the session in the aftermath of the explosions in Brussels.

Equity markets had slumped on Tuesday after twin explosions at Zaventem airport and a metro station left about 34 people dead and 250 wounded. Extremists group ISIL has claimed responsibility for the attacks.

While the UK market proved resilient, regaining strength late on Tuesday and into Wednesday’s early trade, a drop in oil prices sent stocks lower at the closing bell.

At 1626 GMT Brent crude fell 2.27% to $40.85 per barrel and West Texas Intermediate declined 2.9% to $40.25 per barrel.

The Energy Information Administration on Wednesday reported US crude stocks rose by 9.4 million barrels to 532.5 million barrels in the week ended 18 March. Analysts had forecast an increase of 2.5 million barrels.

Another US report from the Commerce Department revealed new home sales rose 2% to 512,000 units in February from a month ago, missing estimates for a 3.2% rise.

In Asia, the president of the Asian Development Bank said on Wednesday that China’s economy is unlikely to suffer a hard landing as there is room for fiscal and monetary stimulus to boost growth.

"There won't be a hard landing," Takehiko Nakao, a former Japanese vice finance minister for international affairs, told a news conference.

The lender has forecast China’s economy will grow 6.7% this year, but Takehiko suggested that the estimate might be modified lowered later this month.

China's government is targeting growth of 6.5% to 7% this year after 6.9% expansion in 2015.

Among corporate stocks, miners were the biggest fallers as metal prices declined with Anglo American, Fresnillo, Glencore, Randgold Resources, Antofagasta and BHP Billiton all weaker.

Glencore was also taking a hit from a downgrade to ‘market perform’ by BMO Capital Markets.

Paddy Power Betfair was lower after it announced that chief operating officer Andy McCue will leave the company and cease to be a director with effect from 30 April.

Kingfisher’s shares jumped after the home improvement retailer reported a 0.3% increase in full year adjusted pre-tax profit to £686m.

Sky was on the front foot after saying it has taken a minority stake in Sugar Films alongside Discovery Channel president Mark Hollinger, who has also invested in the company and will become chairman.

Travel and leisure stocks were higher, recovering from losses on Tuesday on the back of the terrorist attacks in Brussels. TUI AG, Thomas Cook, Carnival and Experian were all firmly in the black.

Sports Direct dropped after releasing a statement clarifying that its earnings for the full year to the end of April will be at the bottom of the range of its guidance announced back in January.

William Hill plunged after posting a disappointing first-quarter update on the back of a loss-making Cheltenham horse racing festival and weaker than expected online performance.

DFS Furniture slid as it warned it was “not clear what the impact and outcome will be on consumer confidence and sterling” ahead of Britain’s referendum on its European Union membership on 23 June.

Market Movers

FTSE 100 (UKX) 6,200.19 0.12%
FTSE 250 (MCX) 16,868.25 -0.21%
techMARK (TASX) 3,113.27 0.26%

FTSE 100 - Risers

Kingfisher (KGF) 371.20p 5.88%
Berkeley Group Holdings (The) (BKG) 3,278.00p 2.53%
Sky (SKY) 1,038.00p 2.47%
Mediclinic International (MDC) 883.50p 2.14%
Unilever (ULVR) 3,165.00p 2.01%
DCC (DCC) 6,100.00p 1.92%
Carnival (CCL) 3,522.00p 1.91%
WPP (WPP) 1,624.00p 1.82%
Burberry Group (BRBY) 1,367.00p 1.64%
British American Tobacco (BATS) 4,046.50p 1.59%

FTSE 100 - Fallers

Anglo American (AAL) 524.00p -5.30%
Fresnillo (FRES) 946.50p -4.78%
Glencore (GLEN) 152.75p -4.44%
Standard Chartered (STAN) 478.10p -3.36%
Antofagasta (ANTO) 482.20p -3.11%
BHP Billiton (BLT) 796.40p -2.49%
Rolls-Royce Holdings (RR.) 679.00p -2.23%
Royal Bank of Scotland Group (RBS) 228.20p -2.23%
Randgold Resources Ltd. (RRS) 6,395.00p -2.14%
Tesco (TSCO) 197.55p -2.03%

FTSE 250 - Risers

Thomas Cook Group (TCG) 91.05p 2.82%
Atkins (WS) (ATK) 1,367.00p 2.70%
Regus (RGU) 306.60p 2.61%
Allied Minds (ALM) 462.20p 2.60%
Auto Trader Group (AUTO) 386.50p 2.52%
Halma (HLMA) 899.50p 2.51%
Assura (AGR) 53.00p 2.32%
OneSavings Bank (OSB) 315.30p 2.20%
Phoenix Group Holdings (DI) (PHNX) 938.00p 2.18%
Evraz (EVR) 89.10p 2.06%

FTSE 250 - Fallers

William Hill (WMH) 330.00p -11.00%
Amec Foster Wheeler (AMFW) 456.70p -8.18%
DFS Furniture (DFS) 303.20p -6.71%
Tullow Oil (TLW) 211.10p -5.76%
Sports Direct International (SPD) 357.80p -5.64%
Kaz Minerals (KAZ) 177.50p -5.03%
Centamin (DI) (CEY) 85.90p -4.50%
Ashmore Group (ASHM) 282.20p -4.31%
Clarkson (CKN) 2,180.00p -4.18%
Wood Group (John) (WG.) 614.00p -3.99%