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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: FTSE 100 falls as energy stocks extend losses after OPEC meeting Despite already having plunged the previous session, stocks in the energy sector were under further selling pressure on Friday in the aftermath of the OPEC meeting, pushing the FTSE 100 firmly into the red. The Organization of Petroleum Exporting Countries decided on Thursday not to scale back their production target of 30m barrels per day despite calls to reduce output amid a supply glut.
Shares of oil producers and energy services companies were extending losses made on Thursday with crude prices set to register their steepest weekly decline since 2011.
The FTSE 100 was down 0.7% at 6,674 early on.
Brent crude was down 0.7% at $72.08 a barrel on Friday morning, trading 10% below levels seen last week. Brent has now fallen by 35% this year and analysts are warning that prices could drop as low as $60 per barrel.
Meanwhile, West Texas Intermediate oil was extending losses after falling below $70 a barrel on Thursday, its first time below this mark since mid-2010.
While oil producers will be directly bearing the brunt of the recent slump in prices, it is also likely to raise the pressure on central banks across the globe currently battling against deflation, such as those in Japan and Europe.
"While falling oil prices are a boon for the hard pressed consumer who has seen their incomes squeezed in the last five years, they are anything but for central bankers who worry about the effects a continued slide will have on their cherished inflation targets," said analyst Michael Hewson from CMC Markets UK.
Overnight, it was revealed that Japanese inflation eased further in October, raising the pressure on prime minister Shinzo Abe ahead of the snap elections next month. Inflation slowed to 2.9%, but was just 0.9% when adjusting for the sales-tax hike earlier this year. This was further away from the government's 2% target and the first sub-1% inflation reading in 14 months.
Energy stocks sink
Oil producers were feeling the impact of the drop in prices with shares in BG Group, Tullow Oil, Shell, BP and BHP Billiton falling sharply on the FTSE 100.
However, FTSE 250 peers Premier Oil, Ophir Energy, Enquest and Afren were registering greater losses amid concerns that smaller firms may not have the scale to mitigate the impact of depressed crude prices for too long.
Meanwhile, energy services stocks were also under pressure, such as Petrofac, Weir Group, Hunting, Wood Group and Amec Foster Wheeler, on the back of fears that developers may scale back their spending budgets.
In contrast, the drop in crude was benefitting shares in the travel sectors on hopes that lower fuel costs will feed into higher profits. Easyjet, IAG, TUI Travel and Carnival were all on the rise.
Mining giant Rio Tinto was making gains after promising shareholders "sustainable cash returns" in 2015. The company also lifted its coal reserves estimates significantly in the Hunter Valley of Australia. |
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| Market Movers
techMARK 2,930.87 -0.19%
FTSE 100 6,673.79 -0.74%
FTSE 250 15,797.91 -0.58%
FTSE 100 - Risers
easyJet (EZJ) 1,681.00p +2.94%
St James's Place (STJ) 781.00p +1.43%
Kingfisher (KGF) 305.70p +1.33%
Compass Group (CPG) 1,078.00p +1.32%
Associated British Foods (ABF) 3,208.00p +1.26%
Vodafone Group (VOD) 230.10p +1.21%
International Consolidated Airlines Group SA (CDI) (IAG) 462.90p +1.11%
Marks & Spencer Group (MKS) 486.80p +1.00%
Whitbread (WTB) 4,566.00p +1.00%
Carnival (CCL) 2,724.00p +1.00%
FTSE 100 - Fallers
BG Group (BG.) 920.00p -6.76%
Weir Group (WEIR) 1,837.00p -6.28%
Tullow Oil (TLW) 441.30p -5.08%
Royal Dutch Shell 'B' (RDSB) 2,175.50p -3.97%
Royal Dutch Shell 'A' (RDSA) 2,095.00p -3.85%
BP (BP.) 410.70p -3.64%
BHP Billiton (BLT) 1,513.00p -3.45%
Petrofac Ltd. (PFC) 820.00p -2.79%
Smiths Group (SMIN) 1,150.00p -2.71%
Sainsbury (J) (SBRY) 228.50p -2.31%
FTSE 250 - Risers
AO World (AO.) 241.00p +3.43%
SSP Group (SSPG) 259.50p +1.76%
Merlin Entertainments (MERL) 372.10p +1.47%
Pennon Group (PNN) 859.00p +1.42%
Zoopla Property Group (WI) (ZPLA) 197.50p +1.28%
Thomas Cook Group (TCG) 120.70p +1.26%
Playtech (PTEC) 649.50p +1.17%
Dunelm Group (DNLM) 880.50p +1.15%
Capital & Counties Properties (CAPC) 373.50p +1.14%
Go-Ahead Group (GOG) 2,604.00p +1.13%
FTSE 250 - Fallers
Premier Oil (PMO) 188.90p -12.55%
Ophir Energy (OPHR) 141.80p -10.20%
EnQuest (ENQ) 52.80p -9.36%
Hunting (HTG) 572.00p -8.70%
Fenner (FENR) 235.60p -8.65%
Wood Group (John) (WG.) 591.00p -7.66%
Vedanta Resources (VED) 734.50p -6.79%
Afren (AFR) 54.95p -5.67%
Cairn Energy (CNE) 158.50p -5.20% |
| | UK Event Calendar | | Friday 28 November
INTERIMS
Pennon Group, Real Estate Credit Investments PCC Ltd
INTERIM DIVIDEND PAYMENT DATE
Booker Group, CareTech Holding, Charles Taylor, DCC, Games Workshop Group, Goals Soccer Centres, Hansa Trust, Hilton Food Group, JZ Capital Partners Ltd, Lookers, Morgan Advanced Materials , Prime People, Provident Financial, Senior, SQN Asset Finance Income Fund Limited
QUARTERLY PAYMENT DATE
City of London Inv Trust, F&C Commercial Property Trust Ltd., Picton Property Income Ltd
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Chicago PMI (US) (14:45)
International Reserves (EU) (11:00)
Retail Sales (GER) (07:00)
Unemployment Rate (EU) (10:00)
Real Estate Credit Investments PCC Ltd
Q3
Arrow Global Group, TCS Group Holding GDR (Each Repr 1 A Shr) (Reg S)
GMS
Filtronic, Proxama , Range Resources Ltd. (DI), Ryanair Holdings
FINALS
Zambeef Products
ANNUAL REPORT
Tracsis
SPECIAL DIVIDEND PAYMENT DATE
Investec Structured Products Calculus VCT, Manchester & London Investment Trust
EGMS
Plaza Centers NV
AGMS
Aquarius Platinum Ld, Coal of Africa Ltd., Gemfields, Hellenic Carriers Ltd., JPMorgan Smaller Companies Inv Trust, Kea Petroleum, Lok'n Store Group, Mosman Oil and Gas Limited (DI), Quadrise Fuels International, Range Resources Ltd. (DI), Scotgold Resources (DI), VinaLand Ltd, VinaLand ZDP Ltd
UK ECONOMIC ANNOUNCEMENTS
Consumer Confidence (09:30)
GFK Consumer Confidence (00:05)
FINAL DIVIDEND PAYMENT DATE
Abcam, Animalcare Group, Galliford Try, Kier Group, Manchester & London Investment Trust, Mcbride, Sabien Technology Group
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed ahead of Eurozone CPI, unemployment data Little change has been seen among European stocks on Friday morning as investors await the release of both the consumer price index (CPI) and unemployment data.
The region's indices look set to register their best monthly performance since February as stocks remain buoyant ahead of next week's European Central Bank meeting, where many are hoping President Mario Draghi will increase its asset-buying programme.
"A mixed looking open expected for the European markets, coming off the back of a particularly strong Asian session," Alpari market analyst Mahony said.
"The release of poor inflation data from Japan drove much of that bullish prices action overnight, whilst the existence of the Eurozone CPI number this morning means that many are holding off until what is expected to be a very volatile release takes place."
The latest CPI figure for the euro-area is expected to show a year-on-year rise of 0.3%, representing a drop from the previous month's reading of 0.4%.
The unemployment figure is predicted to have remained at 11.5% in October.
"Everything is set up for a more dovish European Central Bank going forward as long as CPI remains low and thus should we see a return to 0.3% it is likely that the stock markets will reflect this in a positive way given what it means for potential monetary policy going forward," Mahony continued.
Oil stocks hit by OPEC decision
The decision by the Organization of the Petroleum Exporting Countries (OPEC) to maintain a steady rate of oil output has sent the price of Brent tumbling, and consequently oil stocks, tumbling.
Copper producer Aurubis AG was also in the red thanks to a rating cut from Goldman Sachs, which downgraded the stock from 'buy' to 'neutral'. |
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| | Newspaper Round Up | | Friday newspaper round-up: Opec, BG, Amazon, Wikipedia Oil prices plummeted to a new four-year low on Thursday, after members of the Organisation of the Petroleum Exporting Countries could not reach an agreement on cutting output, the Times reports. Negotiations in Vienna were unsuccessful and that the cartel will now hold production at current levels, as experts warn that the price of Brent could fall as low as $60 a barrel over the coming months.
Pressure keeps mounting for oil and gas firm BG, whose shareholders have been urged to vote against £25m pay deal for its new boss, says the Guardian. Investors have warned that the proposed pay award for Hedge Lund may end up being blocked.
Ashley Hamilton Claxton, corporate governance manager at Royal London Asset Management, backed the choice to appoint Lund but said the company made a mistake in disregarding a pay policy it had agreed with its shareholders just over six months ago.
The Telegraph reports that online retailer giant Amazon has defended itself against claims that it was trying to "destroy Royal Mail". The postal service warned that growth in parcel revenues was slower than expected because of Amazon's decision to launch its own delivery service.
Christopher North, Amazon UK's boss said: "Amazon Logistics is not about replacing a carrier, it is about complementing."
Vincent Tchenguiz has begun a £2.2bn legal action against Grant Thornton, Kaupthing Bank and three individuals he has dubbed "the conspirators" for their alleged role in his wrongful arrest, says the Times.
The embattled tycoon, who has been mired in legal battles since the Serious Fraud Office arrested him three years ago during its failed investigation into Iceland's Kaupthing Bank, said that he believed the defendants had "conspired to instigate" the SFO's inquiry into his business affairs.
According to the Telegraph, Jimmy Wales, the founder of Wikipedia, has drummed up investor support for a £100m London listing of his charity mobile phone company, The People's Operator. | | |
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