A lacklustre day on the news and trading front. However perking things up in the background are oil and the euro. Oil first with WTI crude up 2.22% to $47.37 helped by noises from Russian oil minister Alexander Novak that the global oil glut is emptying – Novak claims 350m barrels have been depleted due to OPEC production cuts.
A US Fed interest rate decision tomorrow – announced 7pm London time – is expected though a rate rise is not anticipated. Rather, the tone of what is said will be heavily scrutinised, with the potential to send the euro past the $1.17 mark. Bank of England chief economist Andy Haldane is due to discuss monetary matters at 6pm tonight. Shortly before the markets closed the euro was trading at $1.1655 while the pound was at $1.3039.
In the US Alphabet, owner of Google, saw its profits surge this morning but the news did little for the Nasdaq as the day wore on, up just +0.05%. The UK FTSE 100 closed 57 points higher at 7,434.82 with oil and mining players Antofagasta and Anglo American rising 7.46% and 6%. Glencore and Rio Tinto were also up strongly.
- UK FTSE 100 7,434.82 +0.77%
- Dow 21,620.51 +0.50%
- S&P 500 2,478.35 +0.34%
- Nasdaq 6,406.01 +0.05%
- Nikkei 225 19,955.20 -0.10%
- DAX 12,270.86 +0.52%
- CAC 40 5,175.19 +0.93%
- Gold 1,257.80 -0.23%
- Oil WTI 47.36 +2.20%
Oil back on track?
A bit more on the oil story. Oil appears to be heading back towards the $50 threshold though admittedly it’s still quite a climb.
Russian oil minister Novak told the media, Oilprice.com reported, “that the world’s reserves of crude oil and petroleum products have now declined for the first time in three years while investments in oil and gas has inched up for the first time since 2014.”
Nigeria has also reportedly said it will step off the pump after it hits 1.8m barrels per day.
BMW confirms electric mini to be built in Oxford - mostly
Mid-afternoon today Mini owner BMW confirmed the new electric Mini – due 2019 – will be built at the UK’s Oxford Cowley plant though it’s not as straightforward as it seems – the electric motor will be assembled in Germany before being shipped to the UK before being dropped in by UK workers.
The Brexit uncertainty had made the decision tricky; BMW had already invested in a new manufacturing base in the Netherlands. Mike Hawes from the Society of Motor Manufacturers & Traders warned that the government still had work to do to encourage British motorists to go electric however.
“Alternatively fuelled vehicle registrations have experienced significant growth in recent times, up 27.5% this year alone, but consumer adoption is still at a relatively low level."
As part of a broad industrial strategy he added "Government must create the conditions for this technology to flourish including infrastructure and long-term incentives for this new generation of vehicles is to be the car of choice of more motorists."
Breaking news: President Trump claims a UK trade deal could "be big".