LONDON MARKETS: FTSE 100 Rises As Oil Aims For $50 A Barrel
May 25 2016 - 5:05AM
Dow Jones News
By Carla Mozee, MarketWatch
M&S shares slammed after warning on profit margins
Stocks in the U.K. moved higher Wednesday, with energy shares
rising alongside oil prices, but Marks & Spencer Group PLC
shares suffered their worst fall since 2008 in the wake of the
retailer's financial results.
The FTSE 100 claimed a 0.6% rise to 6,258.64, with energy,
mining and financial shares gaining ground. A win Wednesday would
be the benchmark's second in a row, after Tuesday's session closed
up 1.4%
(http://www.marketwatch.com/story/ftse-100-edges-up-as-miners-oil-companies-find-a-higher-toehold-2016-05-24)
to a three-week high.
Investors were keeping tabs on oil prices, as both West Texas
Intermediate oil and Brent crude headed toward $50 a barrel. Oil
prices found support after industry data late Tuesday showed a
bigger-than-expected decline
(http://www.marketwatch.com/story/oil-prices-rally-as-api-data-show-us-crude-supply-down-51-million-barrels-sources-2016-05-24)
in weekly U.S. crude supplies.
Shares of oil majors BP PLC (BP.LN) (BP.LN) and Royal Dutch
Shell PLC (RDSB.LN) (RDSB.LN) each popped up 1.3%.
Later Wednesday, the U.S. Energy Information Agency will release
its own weekly report on oil stockpiles.
But gains for the blue-chip benchmark were capped by a slide in
Marks & Spencer (MKS.LN). The high street retailer's stock
tumbled 8.7%, heading toward its worst session since August 2008,
according to FactSet. Earlier Wednesday, M&S warned that its
planned investment into its clothing and home-products business
would hurt profit margins in the near term
(http://www.marketwatch.com/story/marks-spencer-profit-down-19-warns-on-margins-2016-05-25).
"Potential shoppers such as the younger generation still regard
M&S in the same manner as a trip to the dentist, with the
lines, image and experience all in need of radical refreshment,"
said Richard Hunter, head of research at Wilson King Investment
Management.
"This is something of which the company is acutely aware and
will be continuing to attempt to steer a different course."
Meanwhile, Dixons Carphone PLC (DC.LN) shares were up 0.6% as
the electronics retailer forecast full-year pretax profit coming in
at the top half of its previous guidance
(http://www.marketwatch.com/story/dixons-carphone-sees-fy-profit-at-top-of-guidance-2016-05-25).
The pound was up 0.2% at $1.4642.
(END) Dow Jones Newswires
May 25, 2016 04:50 ET (08:50 GMT)
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