With the markets easing back into action after the Easter break, it was an oily start to the abbreviated week.
The Trump administration’s decision to end waivers that allow a number of countries – including, notably, China – to buy Iranian oil without any blowback, letting them expire at the beginning of May, caused Brent Crude to pump higher. The black stuff crossed $75.50 per barrel following a 0.4% increase, striking its best price of 2019 and highest level in approaching 6 months.
Normally this – and the subsequent gains for BP (LON:BP) and Shell (LON:RDSa), which surged 1.5% and 1.8% respectively – would be enough to put a spring in the FTSE's step. However, with losses in its banking sector, a 3% fall from Fresnillo (LON:FRES) and a similar-sized decline for EasyJet (LON:EZJ), the UK index instead slipped 0.3%, keeping it away from 7500. Its Eurozone peers saw an equally uninspired open, the DAX and CAC dropping 0.4% and 0.3% respectively.
As the Tories and Labour prepare to resume their Brexit talks, sterling wasn’t up to much after the bell. Against the dollar it remained the wrong side of $1.299, lurking at a 2 month low, while against the euro a 0.2% increase was little comfort following the steady decline suffered in the first 3 weeks of April.
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