London close: Stocks lower as oil prices plunge, investors weigh data

The FTSE 100 ended the week lower as oil prices plunged and as stronger-than-forecast US inflation increase the chances of an interest rate hike by the Federal Reserve.

Oil prices slid after data from the Energy Information Administration on Thursday showed US crude inventories rose by 2.1m barrels last week to a peak of 504.1m barrels. It marked the third week of record highs in the past month and added to concerns about the global oversupply.

Brent crude dropped 3.7% to $33.04 per barrel and West Texas Intermediate fell 4.6% to $29.39 per barrel.

US inflation rose more than expected in January as the fall in energy prices eased, the Bureau of Labor Statistics revealed on Friday. The consumer price index increased 1.4% year-on-year last month, beating analysts’ estimates for 1.3% growth and marking a considerable pick-up from December’s 0.7% gain.

“The pick-up in core CPI inflation to a three-and-a-half-year high of 2.2% in January, from 2.1%, illustrates that rising domestic price pressures won’t allow the Federal Reserve to leave interest rates at near-zero levels for that much longer.”

Closer to home, better-than-expected data on UK retail sales failed to lift sentiment. UK retail sales jumped 5.2% in January compared to the same month a year ago, beating analysts’ estimates for a 3.4% increase. On the month retail sales rose 2.3% in January, surpassing forecasts for a 0.7% gain.

“After an underwhelming Christmas for British retail, economists will be encouraged to see the sector return to growth in January," said Dennis de Jong, managing director at UFX.com.

In company news, Sports Direct was under the cosh after Jefferies called on founder Mike Ashley to take the company private. The bank suggested Ashley use £400m of his own money and £1bn in loans to buy out investors holding the remaining 45% of the retailer.

Shares in Coca-Cola HBC soared after the company reported an increase in full year volumes and earnings despite foreign exchange having an adverse impact on revenues.

ITV gained after it received ministerial approval for its acquisition of UTV Media’s television assets.

Essentra rallied after the plastic and fibre products firm saw full year revenue rise 27% on a constant currency to £1.1bn.

Invidior slumped a day after it said profits and sales fell by less than expected as the speciality pharmaceuticals business completed an encouraging first year as a public company since being demerged from Reckitt Benckiser.

Market Movers

FTSE 100 (UKX) 5,939.67 -0.54%
FTSE 250 (MCX) 16,130.74 -0.28%
techMARK (TASX) 3,082.42 -0.34%

FTSE 100 - Risers

Fresnillo (FRES) 949.50p 3.15%
Coca-Cola HBC AG (CDI) (CCH) 1,413.00p 2.84%
Randgold Resources Ltd. (RRS) 6,355.00p 2.50%
Centrica (CNA) 211.10p 1.78%
Provident Financial (PFG) 3,212.00p 1.20%
Carnival (CCL) 3,313.00p 1.16%
Merlin Entertainments (MERL) 435.80p 1.09%
ITV (ITV) 252.20p 1.04%
Reckitt Benckiser Group (RB.) 6,552.00p 1.02%
GKN (GKN) 278.80p 0.98%

FTSE 100 - Fallers

Rolls-Royce Holdings (RR.) 641.00p -3.03%
Worldpay Group (WI) (WPG) 294.80p -2.96%
Sports Direct International (SPD) 399.70p -2.49%
Royal Bank of Scotland Group (RBS) 246.00p -2.34%
Royal Mail (RMG) 439.80p -2.09%
Old Mutual (OML) 171.10p -2.00%
Aberdeen Asset Management (ADN) 238.20p -1.89%
Tesco (TSCO) 183.30p -1.85%
Royal Dutch Shell 'B' (RDSB) 1,559.00p -1.76%
Standard Chartered (STAN) 414.60p -1.71%

FTSE 250 - Risers

Essentra (ESNT) 818.00p 9.73%
AO World (AO.) 181.40p 9.28%
Centamin (DI) (CEY) 85.65p 5.61%
Paddy Power Betfair (PPB) 10,060.00p 4.79%
Rightmove (RMV) 3,740.00p 3.54%
Acacia Mining (ACA) 231.40p 3.35%
Daejan Holdings (DJAN) 6,000.00p 3.18%
Poundland Group (PLND) 181.40p 3.07%
Sophos Group (SOPH) 213.00p 3.05%
Allied Minds (ALM) 324.50p 2.98%

FTSE 250 - Fallers

Indivior (INDV) 154.20p -9.82%
Tullow Oil (TLW) 159.90p -5.83%
Vedanta Resources (VED) 249.40p -5.28%
Evraz (EVR) 64.10p -5.18%
Ophir Energy (OPHR) 74.50p -4.36%
Amec Foster Wheeler (AMFW) 349.10p -4.22%
Jimmy Choo (CHOO) 118.60p -4.05%
Wood Group (John) (WG.) 569.00p -3.97%
Meggitt (MGGT) 377.80p -3.65%
Millennium & Copthorne Hotels (MLC) 377.00p -3.33%