Blue-chip index struggles after failing to open on time

LONDON

LONDON’S blue-chip index struggled to gain ground after a delayed opening yesterday due to a technical error.

The FTSE-100 fell 7.97 points or 0.10% to 7,704.4 during the session, having opened an hour later than usual.

The fall came despite a surge in oil prices, which lifted the likes of BP and Shell.

Oil prices pushed higher when it emerged that Venezuela was nearly a month behind on crude deliveries, outweighing fears of production increases from the Organisation of Petroleum Exporting Countries (Opec).

Brent crude rose 1.52% towards the end of the session to $76.942 a barrel on the news, while BP and Shell were some of the top risers on the FTSE-100.

Fiona Cincotta, senior market analyst at City Index, said: “With two weeks remaining until the Opec meeting in Vienna, we are expecting an increase in volatility as investors weigh up the probability of an increase in production against the increasing supply problems in Venezuela and Iran.”

In currency markets, concerns about a hard Brexit weighed on the pound. Against the euro, sterling was down 0.28% to 1.135. The currency edged up 0.1% to 1.343 against the US dollar.

SSE’S shares climbed during the day, despite the energy giant receiving a slap on the wrist from the regulator.

The firm was ordered to pay £1 million for sending out inaccurate and misleading annual statements to 580,000 prepayment meter customers. Regulator Ofgem said an investigation found SSE sent out 1.15 million such statements. Shares were up 9.5p at the close to 1,356.5p.

Shares in outsourcer Mitie fell 0.5p to 195.2p after it insisted it was on track amid a swingeing overhaul, despite reporting a drop in annual earnings after a tough past year.

The group reported a 6% fall in underlying earnings to £77.1m for the year to March 31, although revenues rose 2.8% to £2.2bn.

Spread-betting firm CMC Markets has cheered record annual profits sending its shares up 8.2p to 195.2p.

The group reported a 24% rise in pre-tax profits to a record £60.1m for the year to March 31.

Marks & Spencer boss Steve Rowe saw his pay slashed last year after profits at the high street giant plunged, but will still walk away with £1.1m. Shares fell 1.13% or 3.3p to 289.2p.

Meanwhile, Debenhams’ stock was hit by the news that rival House of Fraser was to close more than half its stores. The department store’s shares fell by 4.15% or 0.88p to 20.32p as traders took a poor view of its prospects.

But Joules defied the retail gloom, with its shares rising 4.26% or 14p to 343p when it said it profits would beat expectations for the year.

The biggest risers on the FTSE-100 were BP up 12.7p to 589.6p, United Utilities up 15.2p to 786.4p, Royal Dutch Shell up 39p to 2,621p and NMC Health up 50p to 3,490p.

The biggest fallers were Mediclinic International down 33.6p to 555.4p, Vodafone Group down 9.1p to 187.5p, Sainsbury’s down 9.5p to 303.6p and Burberry Group down 61p to 2,116p.

NEW YORK

THE S&P and Nasdaq fell yesterday as the technology sector snapped a rally while investors turned to safer bets as they kept an eye on global trade tensions and waited for US and European central bank meetings.

Treasury prices rose, as trade disputes between the United States and its major trade partners were in focus ahead of the G7 summit.

Investors worried about a showdown at the meeting, set for today and tomorrow in Charlevoix, Quebec after U.S. President Donald Trump signalled that he would stick to his tough stance on trade after imposing tariffs on steel and aluminum imports from Canada, Mexico and the European Union last week.

“There’s caution associated with the G7 meeting which historically is neutral for the market. This G7 meeting doesn’t fit the template particularly with regard to trade,” said Quincy Krosby, chief market strategist at Prudential Financial.

Canada and Mexico have retaliated against a range of US exports and the EU has promised to do so as well.

“Equally there’s a European Central Bank meeting and a Federal Reserve meeting next week. Both are paramount for market direction,” said Krosby.

The Dow Jones Industrial Average rose 95.02 points to 25,241.41, the S&P 500 lost 1.98 point to 2,770.37. The Nasdaq Composite fell 54.17 points to 7,635.07.