BP/Shell bounce
Despite oil pulling back from its morning peak, and a mild bounce from sterling, accelerated growth from BP (LON:BP) and Shell (LON:RDSa) helped keep the FTSE’s mining and banking losses at bay.
Effectively erasing its initial Tuesday decline, the UK index found itself lurking just below 7500 and within reach of a fresh 6 and a half month peak. While BP and Shell rose 2.4% and 2.2% respectively on news that the US was ending its waivers on Iranian oil sanctions – a move that impacts a host of countries including China – the FTSE’s miners were in a rough patch, as were its banks. Airline stocks like IAG (LON:ICAG) and easyJet (LON:EZJ), meanwhile, tumbled on the prospect of higher fuel costs following Brent Crude’s increase.
Unlike the FTSE, the DAX and CAC were unable to ease their losses on Tuesday. The German bourse dropped half a percent, just about pushing it under 12200, with the CAC holding on above 5500 as it fell 0.3%.
Sitting around 300 points off its all-time high, the Dow Jones is looking at a quiet start post-Easter break, with the futures pointing to a barely perceptible 0.1% increase after the bell. The index may be sensitive to further words between the US and China, following reports of the latter’s displeasure at the Iranian oil situation.
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