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Stock markets: FTSE 100 advances pulled up by oil stocks

By Indrabati Lahiri

11:30, 3 December 2021

Image of stocks chart
Tech stocks and luxury stocks were biggest decliners as investors remain uncertain about future lockdowns - Photo: Shutterstock

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.

Image of stocks chart Stocks chart – Credit: TradingView

Why 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?

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  • 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

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

Stocks news: what you need to know today

Read more: Stock markets: UK stocks climb as miners extend gains

Markets in this article

Air Liquide
174.30 USD
0.2 +0.120%
Air Liquide
174.30 USD
0.2 +0.120%
230.80 USD
-0.15 -0.070%
Apple Inc (Extended Hours)
190.11 USD
0.12 +0.060%
Banco Santander
3.765 USD
0.035 +0.940%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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