London close: Stocks mixed as oil prices claw back some losses
London stocks closed in a mixed state on Thursday, with energy shares still under pressure even as oil prices began to rebound.
The FTSE 100 ended the session down 0.48% at 7,255.96, while the FTSE 250 was 0.6% firmer at 23,574.62.
Sterling was also going in separate directions, last trading 0.07% stronger on the dollar at $1.3496, while it weakened 0.39% against the euro to €1.1870.
“It looks like weakness in emerging markets is spreading across to their developed peers, with inflation and slowing growth concerns making themselves felt once again,” said IG chief market analyst Chris Beauchamp.
“The impending news on a new Fed chair is probably contributing to the nervousness in growth assets this afternoon, as markets wonder whether Jerome Powell will continue in post or whether Lael Brainard will take over.”
Beauchamp said that second possibility did raise the potential for a more hawkish twist, as the widely-perceived dovish Brainard felt the need to burnish her credentials.
“Stock markets, particularly in the US, continue to suffer a hangover from the end of earnings season, while the continued weakness in crude oil has meant that energy stocks are the main detractor in markets like the Dow and the FTSE 100.”
Oil prices were on the rise towards the end of the European day, having been in focus for much of the last 24 hours after the US was reported to have asked large oil-consuming countries to consider releasing crude stockpiles.
Washington asked China, Japan, India and other big oil users to tap their oil reserves to bring down prices, Reuters said, with China then responding that it was working to release some of its reserves.
The news sent the price of a barrel of Brent crude below the $80 mark to as low as $79.28 - the lowest price since early October.
Sharp falls began on Wednesday after US President Joe Biden asked regulators to investigate potential illegal actions by oil and gas companies to keep prices high.
After the close in London, Brent crude was last 0.59% higher at $80.75 per barrel, and West Texas Intermediate was ahead 0.06% at $78.41.
In equity markets, GlaxoSmithKline was down 3.01% as it traded without entitlement to the dividend.
Shell and BP were lower, falling 1.66% and 1.62% respectively, after the earlier slide in prices for the thick black stuff.
Waste management company Biffa tumbled 9.24% even after it reinstated its dividend and backed full-year expectations as it said adjusted operating profit returned to pre-pandemic levels in the first half.
The stock was hit by a downgrade to 'hold' from 'add' at Peel Hunt, which also slashed its price target to 395p from 430p.
Rotork slumped 7.15% after the flow control and instrumentation maker said second-half revenue would be squeezed as supply-chain pressures continued.
On the upside, Royal Mail rallied 9.75% after saying it would return £400m of cash to shareholders as the postal operator swung to a statutory profit in the first half of the year.
Operating profit for the six months to 26 September was £311m compared with a £20m loss a year earlier as revenue rose 7.3% to £6.07bn, while pre-tax profit rose to £315m from £17m.
Housebuilders were on the rise after Crest Nicholson lifted its full-year profit expectations as the contribution from the sale of its share in the Surrey Longcross film studio was more than expected.
It also hailed a strong sales performance throughout the second half.
Shares in Crest Nicholson were up 5.15%, while peers Persimmon advanced 4.8% and Taylor Wimpey was 3.76% firmer.
Gambling software maker Playtech advanced 3.91% after confirming it has received an approach from the JKO consortium that includes former Formula One team owner Eddie Jordan about a potential bid.
It was the third approach after Gopher Investments expressed an interest in Playtech a couple of days after it accepted Aristocrat Leisure's £2.1bn offer.
Market Movers
FTSE 100 (UKX) 7,255.96 -0.48%
FTSE 250 (MCX) 23,574.62 0.60%
techMARK (TASX) 4,553.89 -0.77%
FTSE 100 - Risers
Royal Mail (RMG) 479.10p 9.75%
Persimmon (PSN) 2,814.00p 4.80%
Berkeley Group Holdings (The) (BKG) 4,462.00p 3.86%
Taylor Wimpey (TW.) 158.85p 3.76%
Barratt Developments (BDEV) 693.60p 3.62%
Land Securities Group (LAND) 745.80p 3.27%
Informa (INF) 523.40p 3.23%
SEGRO (SGRO) 1,364.50p 2.32%
Experian (EXPN) 3,444.00p 2.16%
Sainsbury (J) (SBRY) 293.70p 1.87%
FTSE 100 - Fallers
Darktrace (DARK) 525.00p -4.64%
Fresnillo (FRES) 951.80p -3.55%
GlaxoSmithKline (GSK) 1,512.00p -3.01%
Polymetal International (POLY) 1,471.00p -3.00%
Anglo American (AAL) 2,797.50p -2.75%
AstraZeneca (AZN) 8,381.00p -2.43%
DCC (CDI) (DCC) 5,832.00p -2.38%
Hikma Pharmaceuticals (HIK) 2,287.00p -2.35%
Antofagasta (ANTO) 1,400.50p -2.10%
Smith & Nephew (SN.) 1,284.50p -1.83%
FTSE 250 - Risers
Watches of Switzerland Group (WOSG) 1,376.00p 5.36%
Crest Nicholson Holdings (CRST) 351.20p 5.15%
Baltic Classifieds Group (BCG) 213.00p 4.93%
Bellway (BWY) 3,258.00p 3.97%
Playtech (PTEC) 770.00p 3.91%
Marks & Spencer Group (MKS) 234.00p 3.73%
Drax Group (DRX) 569.50p 3.55%
Investec (INVP) 365.10p 3.28%
Redrow (RDW) 654.00p 3.18%
Workspace Group (WKP) 865.50p 2.91%
FTSE 250 - Fallers
Biffa (BIFF) 355.50p -9.24%
Rotork (ROR) 346.20p -7.15%
Petropavlovsk (POG) 22.16p -5.94%
Hochschild Mining (HOC) 167.10p -3.63%
Trustpilot Group (TRST) 296.40p -3.13%
Airtel Africa (AAF) 132.70p -2.50%
Ferrexpo (FXPO) 285.60p -2.46%
Trainline (TRN) 294.80p -2.25%
NCC Group (NCC) 242.00p -2.24%
Aston Martin Lagonda Global Holdings (AML) 1,650.50p -2.08%