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.