FTSE 100 latest: Oil price tumble sends chill through markets

Mining stocks were looking far from bullish today as the recent excitement about commodities entering a new supercycle showed more signs of fading.

Shares in the sector charged ahead by 25% at the start of the year, but March has been a different story as the pace of the global economic recovery continues to frustrate due to ongoing Covid-19 restrictions and slow pace of vaccinations across Europe.

Copper miners Antofagasta and Glencore were among today's biggest fallers, declining by more than 2% to leave their valuations 12% lower than their February high points.

The heavyweight sector's weakness has contributed to this week's tepid performance of the FTSE 100 index, which today fell 38.06 points to close at 6,674.83.

Other big fallers also reflected current economic uncertainty as Burberry dipped 65p to 1,928.5p and Rolls-Royce gave up 3.35p to stand at 104.65p. British American Tobacco was off 95p to 2,755p as its shares traded without the right to the latest dividend payment.

With investors more likely to take shelter in defensive sectors, United Utilities added 2.4p to 912.4p on the back of an update showing it will meet forecasts for the year to March 31.

Lower consumption from businesses has been offset by stronger household demand in the lockdown as revenues will be around 3% lower for the year.

London landlords Shaftesbury and Capital & Counties Properties were among stocks down by 2% or more in the FTSE 250 Index, which shed 35.77 points to 21,366.59.

Among AIM stocks, the soaring level of pet ownership during the pandemic has continued to boost the fortunes of veterinary services business CVS.

It is now worth £1.4 billion after shares rose to a fresh record of 1,942p — up 3% or 63p — as interim results showed a near-doubling of profits to £14.8 million and like-for-like sales growth of 8.2% in the past eight months.

While more pets should translate into more vet visits, Hargreaves Lansdown analyst Sophie Lund-Yates said the company will have to peddle hard to keep up with the valuation.

She said: “There's a chance this could be the bottom of the treat tin – conditions are about as favourable as they’ll ever be.”

FTSE 100 falls on predictions of oil price tumble

The FTSE 100 fell slightly today, reversing the modest gains of yesterday amid expectations the oil price may fall if the Suez canal reopens fully soon.

Crude prices rose yesterday after the huge container ship, Ever Given, got jammed sideways in the key trading route, leaving tankers stacked up north and south of the blockage.

That boosted shares in BP and Shell, helping lift the FTSE on an otherwise uneventful session for global markets.

However, salvage experts managed partially to refloat the vessel, meaning some traffic was able slowly to resume yesterday.

Overnight low tide slowed efforts to dislodge the vessel while high winds were making the job of the tug boats trying to shift it harder.

But Brent crude oil fell 88 cents a barrel to $63.53, sending BP down 1.5% and Shell down 1.8%.

The FTSE 100 fell 18.74 points to 6694.15.

Oil analysts said crude prices were coming under pressure due to concerns of continued weak global demand as economies struggle to recover from the Covid lockdowns.

Angela Merkel may have U-turned on Easter lockdowns in Germany, but some experts say that may simply extend the spread of the disease, particularly as vaccine rollouts continue to be so slow in the region.

This has not been helped by inconsistent messaging from France’s Emmanuel Macron among others about the safety and efficacy of the Oxford AstraZeneca vaccine.

Astra today revised down the efficacy rate for its US vaccine trial to 76% from 79%, triggering concerns European leaders may start criticising the jab again, while also complaining about not getting enough supplies of it.

Investors will get further insights into the thinking of central bank leaders today as the Bank of England’s Andrew Bailey is joined by ECB president Christine Lagarde and Bundesbank president Jes Weidmann at a Bank for International Settlements event.

Several Federal Reserve officials will speak later.

CBI retail sales numbers out today for March came in steady at minus-45 on its scorecard, although respondents were optimistic of an April sales surge.

This afternoon brings the final assessment of US fourth quarter GDP which should confirm a modest 4.1% annualised rate of expansion.

Biggest risers on the UK market today were Intertek, up 4%, Experian, up 2% and Persimmon, up 2%. Fallers were Burberry, Antofagasta and Glencore who all fell 3%.