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Shell leads FTSE 100 higher on weak pound and strong oil price

Discussion in 'Market News' started by Lily, Oct 3, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
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    Leading index hits 16 month high but utility shares fall back

    A weaker pound and a stronger oil price has sent the UK market sharply higher, with Royal Dutch Shell leading the way.

    Shell’s A shares are up 49.5p to 1963.5p while its B shares are 51.5p better at 2048.5p, while BP has climbed 7.3p to 457.3p. Brent crude is up 1% at $50.69 in the wake of last week’s moves by oil producers to curb output.

    Over the weekend we all got a little more clarity on what Brexit actually means, although Theresa May continues to say relatively little in order to keep her options open, a course of action used to good effect in recent months by Fed chair Janet Yellen. A slump in sterling made life easier for UK markets, with price action so far this morning seeing high-quality international firms receiving a flood of buyers.

    Another rise in the UK’s manufacturing PMI helped sterling to recover some of its losses, and while the move this morning has garnered plenty of attention it is a pale imitation of the action seen in the immediate aftermath of the Brexit vote.

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