The new year rally of the FTSE 100 index has softened following last night’s latest record close.
London’s top flight started today’s session in negative territory, having peaked at an intraday high of 10,158.41 in dealings on Tuesday.
On the oil market, Brent Crude traded near $60 a barrel after President Trump said Venezuela would turn over between 30 and 50 million barrels to the US.
Market update: Oil stocks weigh on FTSE 100, Vodafone up 3%
09:58 , Graeme EvansThe record-breaking new year run of the FTSE 100 index today ended as lower commodity prices dragged on stocks including BP and Anglo American.
London’s top flight, which peaked at an intraday high of 10,158.41 in dealings on Tuesday, fell 0.5% or 47.47 points to 10,075.26.
President Trump’s pledge to turn over up to 50 million barrels of Venezuelan oil to the US weighed on the price of Brent Crude, which neared $60 a barrel.
The weakness meant BP fell 3% or 13.25p to 418.6p and Shell lost 64.5p to 2682.5p.
Gold and silver prices also eased, leaving Fresnillo down 4% or 158p to 3520p and Antofagasta 148p cheaper at 3394p at the bottom of the FTSE 100. Anglo American dropped 3% or 84p to 3173p.
Other blue-chip fallers included NatWest, which slipped 3% or 17.6p to 643p after analysts at Barclays cut their stance to Equalweight.
At the top of the FTSE 100, Vodafone shares continued their recovery of the past year by lifting another 3p to 103.5p.
The latest improvement came as City firm Berenberg switched to a Buy recommendation with a price target of 119p.
Berenberg is increasingly confident that the mobile phone giant can execute well in its core markets, adding that the company has substantial future capacity for value-creation opportunities.
In a quiet session for corporate updates, Topps Tiles rose 4% or 1.9p to 46.4p after reporting a fifth consecutive quarter of like-for-like sales growth.
Revenues in the Topps Tiles brand grew by 2% on an underlying basis, supported by strong demand from trade customers.
Chief executive Alex Jensen, who started in the role in December, said: “We are confident of delivering another year of progress both strategically and financially".
Topps shares, which are listed in the FTSE All-Share, have risen by more than 25% since November.
FTSE 100 down 0.5%, oil and mining stocks struggle
09:33 , Graeme EvansThe FTSE 100 index has fallen 0.5% after weaker energy and precious metal prices acted as a drag on the performance. The decline comes despite expectations for a steady start to Wall Street trading.
BP and Shell shares are down 3% and 2% respectively, while miners Antofagasta and Fresnillo have fallen 4%.
Their declines reflect a 1% reverse for Brent Crude and 0.8% retreat for gold.
AJ Bell investment director Russ Mould said: “The FTSE 100 retreated from yesterday’s record high amid murmurings about the fate of Greenland and lower oil and precious metals prices.
“As well as pledging to turn over between 30 and 50 million barrels of Venezuelan oil to the US following the weekend strikes on the country, prompting concern about crude oversupply and pressuring prices, President Trump is looking at options to acquire Greenland – with military action apparently not ruled out.”
Online platforms in focus after Claire’s administration
09:16 , Graeme EvansThe fashion and accessories industry has been overwhelmed by competition from “nimble online platforms” such as Temu and TikTok Shop, retail experts said today.
Their comments come after Modella Capital said on Monday that it was placing Claire’s and The Original Factory Shop into administration, putting 2,500 staff at risk of redundancy.
Nicholas Found, head of commercial content at Retail Economics, said Temu’s ultra-low pricing and TikTok Shop’s ability to turn its social media users into customers has diminished the relevance of traditional high street players.
Sean Moran, a restructuring and insolvency partner at Shakespeare Martineau, added: “These tough market conditions will by no means only be affecting Claire’s, and we may well see other retail giants struggle in the coming months.”
FTSE 100 lower, Vodafone upgrade boosts shares
08:16 , Graeme EvansThe FTSE 100 index has fallen in the wake of last night’s record close, easing 0.2% or 15.22 points to 10,107.51.
Fallers included NatWest, which dropped 2.5% or 16.6p to 644p after analysts at Barclays cut their stance to Equalweight.
BP and Shell were also under pressure after the price of Brent Crude fell 1% to near $60 a barrel. The FTSE 100 heavyweights dropped 2%, down 10.7p to 421.1p and 51p to 2696p respectively.
Vodafone shares rose 2% or 1.9p to 102.4p after City firm Berenberg switched to a Buy recommendation with a price target of 119p.
Berenberg said it was increasingly confident that the mobile phone giant can execute well in its core markets, adding that the company has substantial future capacity for value-creation opportunities.
Topps extends run of sales growth, report strong trade demand
07:27 , Graeme EvansTopps Tiles today reported a fifth consecutive quarter of like-for-like sales growth, which it said helped to mitigate the continued cost inflationary environment.
Revenues in the Topps Tiles brand grew by 2% on an underlying basis, supported by a continued strong performance in its trade channel following growth of 3.7%.
Chief executive Alex Jensen, who started in the role in December, said: “We are confident of delivering another year of progress both strategically and financially".
Topps shares, which are listed in the FTSE All-Share, have risen by more than 25% since November. They added another 1.7p to 46.2p in today’s session.
FTSE 100 cools after record session, Asia stocks struggle
07:00 , Graeme EvansDemand for blue-chip stocks is seen cooling after yesterday’s session saw the FTSE 100 index surge to a new intraday record of 10,158.41.
The FTSE 100 index closed last night up 118.16 points at 10,122.73 but is seen falling by about 0.3% at today’s opening bell.
The weaker performance comes amid a downturn for Asia markets after the Nikkei 225 and Hang Seng index both fell by more than 1% this morning.
Records also fell on Wall Street yesterday as the Dow Jones Industrial Average closed up 1% to set another all-time high at 49,462. The S&P 500 also set a new peak after a 0.6% rise and the Nasdaq Composite lifted 0.6%.
On commodity markets, Brent Crude oil is down by almost 1% at $60.14 a barrel and gold about 0.8% cheaper at $4459 an ounce.
The oil price fell after President Trump said Venezuela would turn over between 30 and 50 million barrels to the US, fuelling the wider market’s oversupply fears.
