Shares in BT group are the best-performing on the FTSE 100 so far this morning, rising more than 4% after Ofcom stopped short of recommending a full-blown break-up of its network division Openreach. Ofcom have ordered the former telecoms monopoly to give more independence to Openreach, but the decision to not enforce stronger measures has been warmly greeted by the market with shares rising back above 400p. The broader market is marginally higher on the day, adding 9 points to yesterday’s closing level by the time of writing.
Oil turns lower
Brent Oil has continued its decline this morning, with the benchmark trading down to its lowest level in over two months. The impact of this decline can be clearly seen in BP (LON:BP) and Royal Dutch Shell (LON:RDSa) shares with both companies’ stock being near the foot of the index. The recent woes for housebuilders also shows little sign of abating, with Barratt Developments (LON:BDEV) and Taylor Wimpey (LON:TW) languishing amongst the worst performing stocks as the Brexit fallout continues to provide adverse operating headwinds. Mining stocks are looking to build on yesterday’s gains with Rio Tinto (LON:RIO) and BHP Billiton (LON:BLT) both trading firmly in the green so far.
Sterling shrugs off Weale’s comments
The pound has recovered from some early selling which saw the currency trade down to its lowest level against the US dollar in over two weeks following comments from BoE member Martin Weale. The comments in today’s Financial Times state that the recent weak PMIs provide an argument for easing next week, saying that his attitude has been changed by the economic indicators after they came in much worse than expected last Friday. With the US central bank’s first meeting post-referendum concluding tomorrow evening, there is likely to be heightened volatility in the cross for the foreseeable future.