Stock markets: FTSE 100 advances pulled up by oil stocks
11:30, 3 December 2021
UK stocks climbed up on Friday morning, led by commodity stocks, ending a turbulent week on a high note, after stocks wobbled considerably following the discovery of the Omicron variant. The market was mostly pulled up by oil giants such as BP (BP) and Royal Dutch Shell ((RDSA) as investors were hopeful following the OPEC+ committee’s pledge to review oil production levels if demand takes a hit due to Omicron.
European stocks on the other hand, were more subdued amidst increased restrictions by Germany and the US to curb the spread of the virus. Tech stocks and luxury stocks were the biggest decliners as investors remain uncertain about future lockdowns.
What’s interesting today: Retailer Wickes Group (WIX) saw shares rise by approximately 10% after it adjusted its profit outlook with a strong fourth quarter so far. Mining stocks dipped, but were set to recover losses from the past week as commodity prices continued to gain. Financial services company Hargreaves Lansdown welcomes Amy Stirling as Chief Financial Officer, to take over from Philip Johnson.
Stocks chart – Credit: TradingViewWhy are UK stocks up today?
OPEC+ committee’s decision to review oil production: The OPEC+ committee has agreed to review oil production levels before their next meeting
What is your sentiment on UK100?
- What this means: Oil prices have been extremely volatile in the last few months, with multiple record highs touched as well as sudden dips. This decision by the OPEC+ committee was welcomed with a sigh of relief by investors and oil production giants equally, as it would help regulate prices in a period where demand is uncertain, and is likely to fall at a moment’s notice due to ongoing supply chain constraints. BP and Royal Dutch Shares both rose following this announcement.
Stock markets: key highlights
- The FTSE 100 index inched up 0.53% to 7166.7 points
- The Euro Stoxx 50 index on the other hand, dipped 0.24% to touch 4098.1 points
- Germany’s DAX index edged up 0.77% to 15380.1 points
- France’s CAC 40 index climbed up 0.81% to 6850.8 points
- The leading sectors were communications and transportation, whereas technology services and retail lagged behind
- US S&P 500 futures inched up 0.09% to $4580
Market sentiment
- The CBOE Volatility Index, or VIX, a measure of expected fluctuations in US stocks dipped to 27.26 points
- The US Dollar Index (DXY) rose to $96.32
- The US 10-year bond yield index dropped to 1.456%
Top stock gainers: UK and Europe
- The top stock gainers in UK were BT Group (BT.A), International Consolidated Airlines Group (IAG) and BP (BP)
- BT Group (BT.A) shares rallied after speculations of Reliance Industries (RELIANCE) interest in the group persisted
- International Consolidated Airlines Group (IAG) extended their gains from their recent deal to source sustainable aviation fuel from Velocys (VLS) over the next decade
- BP (BT.A) and Schneider Electric (SU) struck a deal to reduce carbon emissions over three continents
- The best performing companies in Europe were Danone (BN), Vonovia (VNA) and Allianz (ALV)
- Danone (BN) shares rallied following its recent announcement to switch one of its dairy factories to produce plant -based products
- Vonovia (VNA) shares increased on the back of the company’s plans to raise approximately EUR 8bn worth of capital
- Allianz (ALV)shares gained as the company launched a reinsurance deal in the US
Top stock losers: UK and Europe
- In the UK, the top stock losers were Darktrace (DARK), Ocado Group (OCDO) and Croda International (CRDA)
- Darktrace (DARK) shares fell as the group reported ransomware attacks to have increased by more than 30%
- Ocado Group (OCDO) recently launched automated online grocery technology for warehouses
- Croda International (CRDA) recently launched their own personal care website
- In Europe, the worst performing companies were Schneider Electric (SU), Santander (BNC) and Air Liquide (AI)
- Schneider Electric (SU) recently signed a deal with BP to decarbonize clients across three continents
- Santander (BNC) shares tumbled following Fitch Ratings labelling their consumer finance division with an A- rating
- Air Liquide (AI) recently gained EU funding for a carbon-capture venture
Stocks news: what you need to know today
- Hong Kong stocks dip on the back of Didi delisting
- ReNew and L&T sign deal to promote green hydrogen in India
- Indian stocks stay subdued as Omicron worries persist
- Apple (AAPL) stocks gain after strong iPhone outlook
Read more: Stock markets: UK stocks climb as miners extend gains
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