LONDON MARKETS: FTSE 100 Wavers As Commodity Shares Struggle
August 31 2016 - 5:23AM
Dow Jones News
By Carla Mozee, MarketWatch
London index on track for monthly gain
Stocks in the U.K. darted between small gains and losses
Wednesday, with commodity shares remaining under pressure, but the
benchmark FTSE 100 was still on track to finish higher for the
month.
The FTSE 100 was up 1 point at 6,821.97. But the London
benchmark is still poised for a 1.4% gain for the month of
August.
"Cheaper oil and a stronger U.S. dollar continue weighing on the
U.K.'s stock market," Ipek Ozkardeskaya, senior market analyst at
London Capital Group, in a note. "The high volatility is a sign of
stress. Mining stocks and energy companies remain the most
sensitive sectors", she said, noting West Texas Intermediate oil
prices are headed toward $45 a barrel.
In the oil group, BP PLC (BP.LN) (BP.LN) fell 0.3% and Royal
Dutch Shell (RDSB.LN) (RDSB.LN) dropped 0.7%. WTI oil and Brent
crude were trading near three-week lows
(http://www.marketwatch.com/story/us-oil-prices-slide-to-near-three-week-low-ahead-of-stockpile-data-2016-08-31)
ahead of weekly U.S. crude supply data due later Wednesday.
The dollar has strengthened in recent sessions, making
commodities priced in the greenback more expensive to purchase for
holders of other currencies. Mining stocks were in the red in
London, following losses overnight in Australia as metals prices
dropped.
Precious metal producer Fresnillo PLC (FRES.LN) fell 2.2%,
Randgold Resources PLC (RRS.LN) gave up 2.1%, and iron ore miner
BHP Billiton PLC (BLT.LN) (BHP.AU) (BHP.AU) shed 1.8%.
But housing shares were mostly higher after the Nationwide
Building Society said U.K. house-price growth picked up slightly in
August
(http://www.marketwatch.com/story/uk-home-prices-pick-up-despite-brexit-2016-08-31),
in contrast with earlier signs that the housing market may be
cooling after the country's Brexit vote in June.
Berkeley Group Holdings PLC (BKG.LN) was up 2.5%, Barratt
Developments PLC (BDEV.LN) tacked on 0.7%, and Taylor Wimpey PLC's
stock (TW.LN) rose 0.8%. Persimmon PLC (PSN.LN) edged up 0.1%.
The pound did push higher following the house-price data,
trading at $1.3147, compared with $1.3081 late Tuesday.
(END) Dow Jones Newswires
August 31, 2016 05:08 ET (09:08 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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