FTSE 100 watch: Footsie heads south amid oil price fall

on Apr 5, 2016

The UK benchmark index has slipped deep into the red in today’s session, with a fall in oil prices souring investor sentiment and fuelling a selloff of London-listed resources stocks. In individual movers, Tesco (LON:TSCO) is underperforming the FTSE 100 after analysts at Deutsche Bank downgraded the shares.

As of 12:44 BST, the Footsie had lost 82.07 points to stand 1.33 percent lower at 6,082.65. Britain’s blue-chip index has slipped below the 6,100-point mark with oil prices extending their losses ahead of a meeting of the world’s biggest oil producers next week.
“We’re now currently within the third week of downside for oil prices and that follows on from five consecutive weeks of gains in US crude oil, so I feel like we’ve seen quite a substantial rally – we’re taking back some of that,” Joshua Mahony, market analyst at IG, said, as quoted by Reuters. “We’re also seeing people positioning as precursor to the OPEC meeting.”

Glencore (LON:GLEN) and BHP Billiton (LON:BHP) have posted the most notable losses so far, with Glencore’s share price standing 5.44 percent lower at 141.65p and shares in BHP changing hands 4.78 percent in the red at 732.90p.
Outside the resource sector, Tesco’s shares have fallen 1.70 percent to 187.65p after analysts at Deutsche Bank trimmed their rating on the UK supermarket from ‘buy’ to ‘hold’. The bank argues that while Tesco’s new management team has made some real progress, pressures remain.
At the other end of the spectrum has been Randgold Resources (LON:RRS) whose shares have tracked the gold price higher. Randgold’s share price is 1.85 percent better off at 6,320.00p.
**The FTSE 100 was 1.37 percent down at 6,080.09 points as of 12:52 BST on April 5, 2016.**

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