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UPDATE 1-Oil majors support FTSE 100; Intu jumps on M&A report

Reuters London
Updated: 09-09-2019 14:44 IST
UPDATE 1-Oil majors support FTSE 100; Intu jumps on M&A report

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London's FTSE 100 inched up on Monday as shares of oil majors rose on hopes that Saudi Arabia's new energy minister will continue to support output cuts, while a fall in the local currency also aided the exporter-heavy bourse. The main index, which earns more than two-thirds of its profits in dollars, rose 0.3% by 0801 GMT as sterling weakened ahead of the parliament votes on whether to hold an early election on Oct.15.

Shell and BP climbed higher by 1% each, tracking a rise in crude prices. The FTSE 250 midcap index was up by roughly the same level, led by a 17% jump in Intu Properties after the Times reported that private equity firm Orion Capital Managers was looking to buy the shopping center operator.

Rises in both the bourses come ahead of a slew of British economic data, including gross domestic product data, scheduled this morning. Investors are expecting central banks to step in with stimulus plans after data showed an unexpected fall in China's exports last month, while another one pointed to a slowdown in Japan's economy in the second quarter.

The weakness reflected an impact from the prolonged Sino-U.S. trade war to global economic growth. The dispute saw a sharp escalation last month when the United States announced tariffs going up to $200 billion worth of Chinese goods. That had dragged the FTSE 100 to its biggest monthly fall so far this year that month.

On Monday, the FTSE 100 saw some sharp news-related falls, with Associated British Foods losing 3.3% after poor outlook for its Primark fashion chain and British Airways owner IAG dropping 2.6% as it cancelled nearly all its flights due to strikes. Smaller airlines such as EasyJet and Wizz Air were also down 3% and 2.5%, respectively.

Lloyds was the biggest drag with a 2% dip after Britain's largest lender said it is suspending its 2019 share buyback program and will make extra provisions for payment protection insurance claims. "Investors may also worry about the dividend, however, we do know that the later the claims, the less chance they have of success," analyst Neil Wilson said.

Also Read: UPDATE 1-Encouraging China trade comments, weaker pound lift FTSE 100

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

COUNTRY : United Kingdom