The UK benchmark index has slipped into the red this Monday, pressured by a drop in the oil price which is weighing on London-listed energy stocks. Schroders (LON:SDR) is outperforming the FTSE 100 today after confirming that it was in talks with Lloyds Banking Group (LON:LLOY) about a possible wealth management venture.
FTSE 100 in the red
As of 12:37 BST, the Footsie had given up 39.65 points to stand 0.54 percent lower at 7,278.89. Royal Dutch Shell (LON:RDSA) and BP (LON:BP) have lost 0.89 percent and 1.70 percent respectively, tracking oil prices lower. Investors also remain focused on the ongoing Brexit process.
Reuters quoted Goldman Sachs analysts as commenting that international UK stocks should be relatively insulated from Brexit risks because they’re less exposed to domestic economic weakness and they benefit when sterling falls.
“We find that insulation still exists: the correlation remains negative, although less so than at the beginning of the year,” the broker pointed out.
Chris Beauchamp, market analyst at IG, meanwhile said in a note that selling across Europe had resumed after US markets took a turn southward on Friday.
“Last week saw the FTSE 100 shed most of the ground gained in the second half of September, in a classic demonstration of markets ‘taking the stairs up, but the lift down’,” he pointed out.
Individual stock news
In individual stock news, Schroders’ share price is marginally outperforming the broader market, trading 0.30 percent higher, having surged more than one percent in earlier trading, after confirming that it was in discussion with Lloyds about “working closely together in parts of the wealth sector”. Lloyds’ shares meanwhile are 0.97 percent down at 58.36p.
The FTSE 100 was 0.53 percent down at 7,279.61 points as of 13:00 BST on Monday, 08 October 2018.