FTSE 100 watch: Footsie benefits from stronger oil

Next shares surge as group hikes guidance

FTSE 100 watch: Footsie benefits from stronger oil

The UK benchmark index has climbed into positive territory this Tuesday, recouping the previous session’s losses, benefitting from a rise in crude prices. Next (LON:NXT) is also lending support to the FTSE 100 after hiking its full-year guidance.

FTSE 100 gains ground

As of 12:06 BST, the Footsie had added 36.27 points to stand 0.49 percent higher at 7,494.68. The blue-chip index has benefitted from a rise in oil prices amid prospects for US sanctions on Iran, as well as reluctance by OPEC to hike output.

“Despite a lot of bluff and bluster and gnashing of tweets, US President Donald Trump was unable to provoke a spike in OPEC oil supply at OPEC’s Algiers meeting over the weekend,” noted Richard Robinson, the manager of the Ashburton Global Energy Fund, as quoted by Proactive Investors. “OPEC’s power does not rest in the oil it produces, but rather in the oil it does not produce. Without spare capacity, OPEC is relatively impotent in relation to preventing rising prices.”

Shares in Royal Dutch Shell (LON:RDSA) have gained 1.72 percent to 2,639.00p, while BP (LON:BP) is 2.25 percent up at 582.90p.

Individual stock news

Next has been today’s most prominent riser, having gained 10.11 percent to 5,642.00p, as it hiked its full-year guidance.

“It is still too early to measure whether Next is gaining share as a result of retrenchment by other mid-market apparel retailers, although we expect this to be a growing feature in the medium term,” said UBS analysts, as quoted by Reuters.

News that British American Tobacco (LON:BATS) has appointed a new chief executive meanwhile has failed to lift the shares which are currently changing hands 1.24 percent lower at 3,500.00p.

The FTSE 100 was 0.55 percent up at 7,499.64 points as of 12:35 BST on Tuesday, 25 September 2018.

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