View the article online at http://citywire.co.uk/money/article/a875500
Oil surge powers FTSE higher amid investor relief
Oil majors power FTSE 100 rally as Brent crude surges through $30 mark, with Saudi Arabia branding low price 'irrational'.
Oil majors have driven the FTSE 100 higher after Brent crude surged through the $30 mark, as Saudi Arabia's oil minister branded the beaten-up price 'irrational'.
Oil rose 5% to $30.29 a barrel, taking weekly gains to 6%, helping inject some relief into beaten-up markets. The FTSE 100 rose 104 points, or 1.8%, to 5,878, with oil majors among the biggest gainers.
'Oil prices made an impressive bounce to take both Brent and West Texas Intermediate back up above $30,' said Augustin Eden at Accendo Markets. 'However, note that oversupply still persists and a Saudi oil minister talking of irrational price levels does not a bull market make, especially when financial markets are not exactly known for their rationality.'
In a broad-based rally also supported by yesterday's hints of further quantitative easing from the European Central Bank, almost every stock on the FTSE 100 made gains.
Emerging markets-focused stocks performed well. Luxury goods maker Burberry (BRBY), which conducts a substantial amount of business in China, rose 3.9% to £11.98 while Aberdeen Asset Management (ADN) was up 3.8% at 234.2p.
Shares in Woodford Patient Capital (WPCT ) bounced after a sustained sell-off, up 3.5% at 90.7p.
Another investment trust in recovery mode was James Henderson's Lowland (LWI ), up 7.4% at £12.08 and towards the top of the FTSE Small Cap, after steep falls in the market turmoil. The shares are down 13% since the turn of the year.
A surge in Japanese stocks meanwhile help power small cap investment trust Baillie Gifford Shin Nippon (BGS ) 5.8% higher at 423.3p.
News sponsored by:
More about this:
Look up the shares
- Royal Dutch Shell PLC (RDSb.L)
- BG Group PLC (BG.L)
- BP PLC (BP.L)
- Antofagasta PLC (ANTO.L)
- BHP Billiton PLC (BLT.L)
- Burberry Group PLC (BRBY.L)
- Aberdeen Asset Management PLC (ADN.L)
- Pearson PLC (PSON.L)
- Tullow Oil PLC (TLW.L)
- Petrofac Ltd (PFC.L)
- Ophir Energy PLC (OPHR.L)
Look up the investment trusts
- Woodford Patient Capital Trust (Ordinary Share)
- Lowland (Ordinary Share)
- Baillie Gifford Shin Nippon (Ordinary Share)
More from us
Tools from Citywire Money
From the ForumsForums are temporarily down for maintenance.
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.
by Michelle McGagh on Jul 28, 2016 at 13:47