FTSE 100 watch: Fall in oil weighs on Footsie

on Jul 4, 2017
Updated: Mar 11, 2020

The UK benchmark index is failing to make headway in today’s session, despite a surge in Worldpay (LON:WPG), which confirmed that it had received takeover approaches. The FTSE 100 has come under pressure amid a drop in crude prices and weaker construction data.

As of 12:13 BST, Britain’s blue-chip index had lost 5.23 percent to stand 0.07 percent lower at 7,371.86, pressured by a fall in oil. The seasonally adjusted IHS Markit/CIPS UK Construction Purchasing Managers’ Index (PMI) meanwhile came in at 54.8 for June, down from May’s 17-month peak of 56.
In individual movers, shares in Worldpay have jumped as much as 22 percent to 389.80p after the company confirmed that it had received preliminary approaches from Vantiv and JPMorgan.

In other notable risers, J Sainsbury (LON:SBRY) has gained 1.04 percent to 251.50p after unveiling a forecast-beating rise in first-quarter like-for-like sales.
“You’ve got the dual impact of higher prices which is pushing revenue up. What we don’t see today is the effect that has on (Sainsbury’s) cost, so it’s a bit of a double-edged sword,” George Salmon, equity analyst at Hargreaves Lansdown, said, as quoted by Reuters. “My overall impression is that while things are moving forwards, the headwinds are looking strong as well, so it’s just a tough time for the sector.”

Shares in Provident Financial (LON:PFG) meanwhile remain in the doldrums after Liberum said yesterday that it expected more pain for the group.
“We think another profit warning for home credit is likely, since guidance remains too optimistic,” the broker’s analyst Portia Patel commented, as quoted by Citywire. Provident’s share price is currently 2.96 percent worse off at 2,298.00p.
**The FTSE 100 was 0.11 percent down at 7,368.93p as of 12:25 BST on Tuesday, 04 July 2017.**