Another round of losses in its commodity sector meant the FTSE was unable to escape the 3-week low-hitting rut it has found itself in during the second half of the week.
Dropping a further 0.4%, the UK index is in serious danger of dipping below 7400 at some point this Friday, a move that would take it back to where it was at the very start of the month, completing the erasure of a steady April rise that had seen it trading at a near 7-month peak of 7520 post-Easter.
That BP (LON:BP) and Shell (LON:RDSa) returned to their own 3-week lows, hurt by Brent Crude retreating back to $74 per barrel having breached $75 on Thursday, played a significant part in the FTSE’s decline; ditto a 3.5% slide from Glencore (LON:GLEN), which is now under investigation by the Commodity Futures Trading Commission over potentially corrupt practices.
Royal Bank of Scotland (LON:RBS), meanwhile, pointed the finger at Brexit for its 12.5% plunge in first quarter profit and worse than forecast revenue, the majority taxpayer-owned lender diving nearly 5% in the aftermath of the announcement. The real kicker appeared to be RBS casting doubts over its ability to meet its full year targets. Though the bank kept its guidance unchanged, it highlighted how the uncertain outcome of the UK-EU divorce, and the impact that has on business borrowing, ‘is likely to make income growth more challenging in the near term’.
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