London Open: Stocks fall as oil prices rise
London stocks fell again on Monday as oil prices surged amid the ongoing Russian-Ukrainian war.
As of 0840 GMT, the FTSE 100 was down 1.7% at 6,870.71 as oil prices hit their highest level since 2008 after the United States said at the weekend it was were in talks with European allies about a possible ban on imports from Russia.
Hussein Sayed, Chief Market Strategist at Exinitysaid: “Prices soared at the Asian open, with Brent crude rising $21 to trade slightly above $139 a barrel before falling back below $130.
“Sanctioning Russian oil would be the most significant escalation in the West’s response to Moscow’s invasion of Ukraine, and it would have serious negative consequences for the global economy. While the Russian economy will be most affected, Europe will likely fall into a recession and US growth will be affected, with consumers being the most affected.
“In 2008, demand destruction occurred when prices neared $140. Brent crude oil actually reached $147.50 in July 2008, shortly before the global financial crisis. inflation, prices must rise above $200 to have a similar effect on consumption. the price spike is not a demand shock but a supply shock, and there is no cap in sight.
“Russia currently exports around 4.5 million barrels of crude. If exports were cut in half, prices would likely remain high in the short to medium term around current levels, even if the United States and other countries release oil from their strategic reserves. However, if the crisis escalates and Europe imposes sanctions on Russian oil with no response from OPEC members, expect prices to rise above $200.”
On the stock markets, banks were under pressure, with Lloyd’s, Barclays and NatWest everything weaker.
Travel-related stocks also fell, with the owner of BA and Iberia AGI, Wizz Air, You and easyJet at the bottom.
Oxford Instruments tanked after Spectrum withdrew its £1.7bn bid for the company, citing global market uncertainties caused by the “deplorable” events in Ukraine following the Russian invasion. Last week, Oxford Instruments said it had received a non-binding indicative offer comprising £19.50 per share in cash, plus new shares of Spectris worth £11.50 each.
On the rise, the Russian steelmaker Evraz and Anglo-Russian precious metals miner Polymetal were the top gainers on the FTSE 100, after falling in recent days.
Miners rallied as metal prices rose, with Anglo-American, glencore, Rio and Antofagasta all significantly higher.
oil giants Shell and BP were also high risers amid soaring oil prices.
FTSE 100 (UKX) 6,870.71 -1.67%
FTSE 250 (MCX) 18,692.73 -3.58%
techMARK (TASX) 3,988.36 -2.60%
FTSE 100 – Risers
Evraz (EVR) 81.06p 35.10%
Polymetal International (POLY) 192.30p 13.52%
Anglo-American (AAL) 4,059.50p 6.05%
Hull (SHEL) 1,929.40p 5.24%
BAE systems (BA.) 723.80p 4.66%
Fresnillo (FRES) 775.60p 4.53%
Glencore (GLEN) 480.30p 4.27%
Rio Tinto (RIO) 6,234.00p 3.42%
Antofagasta (ANTO) 1,579.50p 3.10%
BP (BP.) 354.80p 1.91%
FTSE 100 – Slaughterhouses
Intermediate Capital Group (ICP) 1,307.00p -8.98%
International Consolidated Airlines Group SA (CDI) (IAG) 113.10p -8.41%
Lloyds Banking Group (LLOY) 39.59p -7.99%
Coca-Cola HBC SA (CDI) (CCH) 1,449.50p -7.97%
Barclays (BARC) 144.42p -7.90%
NATWEST GROUP PLC ORD 100P (NWG) 186.80p -7.75%
Melrose Industries (MRO) 112.30p -7.42%
Mondi (MNDI) 1,249.00p -7.31%
BT Group (BT.A) 155.85p -6.93%
Smurfit Kappa Group (CDI) (SKG) 2,838.00p -6.80%
FTSE 250 – Risers
Clarkson (CKN) 3,330.00p 6.90%
Harbor Energy (HBR) 417.60p 5.72%
Hochschild Mining (HOC) 126.90p 4.70%
Centamine (DI) (CEY) 106.90p 3.99%
Capricorn Energy (CNE) 219.40p 3.88%
BlackRock World Mining Trust (BRWM) 760.00p 3.12%
Energian (ENOG) 1,062.00p 2.21%
QinetiQ Group (QQ.) 306.80p 0.72%
Diversified Energy Company (DEC) 109.00p 0.55%
Ultra Electronics Holdings (ULE) 3,200.00p 0.44%
FTSE 250 – Slaughterhouses
Oxford Instruments (OXIG) 1,730.00p -24.12%
Wizz Air Holdings (WIZZ) 2,304.00p -13.80%
TUI AG Reg Shs (DI) (TUI) 172.85p -11.13%
GTI (GTI) 214.00p -9.67%
Petropavlovsk (POG) 1.70p -9.57%
easyJet (EZJ) 430.90p -9.34%
Aston Martin Lagonda Global Holdings (AML) 719.20p -8.48%
TBC Banking Group (TBCG) 879.00p -8.44%
Marks & Spencer Group (MKS) 144.05p -8.42%
Page group (PAGE) 414.80p -8.03%