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FTSE 100 slips back into the red as Wall Street gains pared; oil prices advance

Published 07/06/2023, 15:21
© Reuters FTSE 100 slips back into the red as Wall Street gains pared; oil prices advance
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Proactive Investors -

  • FTSE 100 holds off day's low of 7,604.42
  • Dow Jones flat, but S&P 500 and Nasdaq hold firm
  • Halifax reports first fall in annual house prices since 2012

Crude wanted

Oil prices moved higher on Wednesday afternoon as Saudi Arabia's surprise pledge to deepen output cuts last weekend outweighed weak Chinese export data.

UK Brent crude was up 1.0%, at $75.60 a barrel, while US West Texas Intermediate (WTI) rose 1.3%, to $72.68.

Both benchmarks jumped higher on Monday after the Saudi decision to reduce output by 1 million barrels per day (bpd) to 9 million bpd in July.

But prices eased after Chinese data on Wednesday showed exports shrank by more than expected in May and imports fell, albeit at a slower pace, as manufacturers struggled to find demand abroad and domestic consumption remained sluggish.

Wednesday's data also showed that crude oil imports into China, the world's largest oil importer, rose to their third-highest monthly level in May as refiners built up inventories.

The Organisation for Economic Cooperation and Development (OECD) said on Wednesday that the world economy is set to grow 2.7% this year, up from its previous forecast of 2.6% in March.

Focus further out

The FTSE 100 held its modest gains as US blue chips started little changed on Wednesday, marking time after recent gains ahead of the Federal Reserve’s next interest rate decision on June 14, with limited market-moving data expected in the next few days.

Around 20 minutes after the New York open, the Dow Jones Industrial Average (DJIA) was up 34 points, 0.1% at 33,608, although those for the broader S&P 500 index rose 0.3%, and the tech-laden Nasdaq Composite added 0.6%.

The US benchmarks were moving higher even after a major Tuesday rally, headlined by the S&P 500's highest close of 2023. That's a great sign, according to Adam Sarhan, CEO of 50 Park Investments.

“The fact that it refuses to fall to me is extremely bullish,” Sarhan said. “Normally, after a big run-up, you see a market pullback, and when the market doesn’t pull back and goes sideways, that to me is very bullish.”

Wait for UBS

UBS said it has delayed the publication of its second-quarter results until August 31, Reuters reported.

Switzerland's largest bank, which is currently completing its takeover of rival Credit Suisse (SIX:CSGN) had originally planned to report its earnings on July 25.

UBS was considering delaying its quarterly results at least until the end of August, as the Swiss banking giant deals with complexities over its takeover, the Financial Times reported on Sunday.

Read more on Proactive Investors UK

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