FTSE 100 watch: Stronger oil lifts blue-chip index

on May 15, 2017

The UK benchmark index has climbed marginally higher in today’s session, finding support in stronger oil, and with investors shrugging off cybersecurity concerns. TUI Group (LON:TUI), however, has tumbled to the bottom of the FTSE 100 leaderboard as its half-year update disappointed the market.

As of 12:15 BST, Britain’s blue-chip index had added 6.58 points to stand 0.09 percent higher at 7,441.97, having touched a fresh record high of 7,460.20 points earlier in the session. Sentiment has been positive in today’s trading despite a global ransomware attack which hit companies, hospitals and schools around the world.
Royal Dutch Shell (LON:RDSA) and BP (LON:BP) have given the Footsie a lift, finding support in stronger oil as Reuters reported that Saudi Arabia and Russia had agreed that output cuts need to be extended until March next year. Shell’s share price is currently 1.08 percent better off at 2,168.09p, while shares in BP are changing hands 1.24 percent higher at 465.70p.

“The FTSE has already posted a fresh record amid commodity strength as oil jumps on hopes of extended OPEC-led production cuts, boosting heavyweight Energy names, and metals benefit from a weaker USD and fresh China optimism,” Mike van Dulken, Head of Research at Accendo Markets, commented, as quoted by The Telegraph.
Tui Group, however, has fallen deep into the red after its half-year results revealed a wider loss in the second quarter of its financial year.
“The targeted 10%+ annual underlying earnings growth looks assured, but we worry about the increasing capital intensity required to generate said growth,” said Panmure Gordon analyst Mark Irvine-Fortescue, as quoted by Reuters. Tui’s share price has lost 4.03 percent to 1,142.00p.
**The FTSE 100 was 0.07 percent up at 7,440.61 points as of 12:32 BST on Monday, 15 May 2017.**

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