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Britain’s FTSE touches 30-day high as oil prices rise, pound slips

Britain’s FTSE touches 30-day high as oil prices rise, pound slipsLONDON: UK shares rose to their highest in a month on Tuesday as rising oil prices boosted energy stocks and the pound retreated, even though British UK inflation rose to its highest in six years.

A cheaper pound generally supports the FTSE as the weaker currency translates into an accounting boost for large companies with overseas revenues.

The blue-chip FTSE 100 closed up 0.63 percent at 7500.79 points, a level not reached since November 9.

Energy stocks provided the most support, as oil rose above $65 a barrel for the first time since mid-2015 after the shutdown of the UK’s biggest North Sea pipeline.

BP gained 2.5 percent and Royal Dutch Shell 1.7 percent.

UK inflation figures, which showed prices rising at an annual rate of 3.1 percent in November, had little impact on sterling.

“This was basically priced in,” said Kallum Pickering, a senior economist at Berenberg.

The pound slipped during the session against a stronger dollar, which was beefed up by expectations of a rate increase on Wednesday.

Pickering said investors would be watching the wording of the Bank of England’s minutes on Thursday to see whether the central bank would try to raise expectations for monetary tightening next year.

Supermarkets Sainsbury and Morrison were the worst performers, down 4.1 percent and 4.5 respectively, , after data released by market researcher Kantar Worldpanel showed both lagged behind Tesco in sales growth. The latter rose 0.15 percent.

Industrial-equipment hire company Ashtead posted one of the best performances, rising 2 percent after it announced a share buyback programme and raised its annual results forecast.

Britain’s largest floor coverings retailer, Carpetright, shed 6 percent after lowering its full-year 2017-18 profit forecast.

Miner and trader Glencore lost 1.1 percent after a market update for its marketing division. Fresnillo lost 1.5 percent.

Copyright Reuters, 2017

Source: Brecorder.com

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