By Carla Mozee, MarketWatch
Prudential rises after results
U.K. stocks finished in the red Tuesday, as a decline in oil and
bank shares shut the door on the index's shot of logging a new
all-time closing high as the pound sank against the dollar.
The FTSE 100 closed down 0.1% at 7,357.85, led by losses among
oil and gas, tech and financial stocks. The move marked the first
fall in two sessions for the blue-chips gauge.
The benchmark intraday had hit 7,386.17, surpassing an all-time
closing high of 7,382.90 that was booked March 1. But the index
flipped lower as oil stocks were hit. The mid-cap FTSE 250 had also
been on track to close at a record high Tuesday, but losses for oil
stocks also weighed on that index.
Read: Ginflation? Brits drink so much gin it's now used to
calculate inflation
(http://www.marketwatch.com/story/ginflation-brits-drink-so-much-gin-its-now-used-to-calculate-inflation-2017-03-14)
Oil shares sagged as prices for Brent crude and West Texas
Intermediate oil each stumbled 2% intraday, yanked down further
after a monthly OPEC report showed an increase in U.S. and Saudi
Arabian crude output
(http://www.marketwatch.com/story/oil-prices-rise-for-the-first-time-in-7-sessions-monthly-opec-report-ahead-2017-03-14)
in an already oversupplied global market.
Oil shares make up 14% of the FTSE 100's weighting, according to
FactSet data. There, shares of oil producer BP PLC (BP.LN) (BP.LN)
fell 1.4% and rival Royal Dutch Shell PLC (RDSB.LN)(RDSB.LN) lost
1.7%.
Meanwhile, concerns about plans by Scotland's First Minister
Nicola Sturgeon to seek a second independence referendum appeared
to weigh on bank shares, leaving the Royal Bank of Scotland Group
PLC (RBS.LN) lower by 3% and Lloyds Banking Group PLC (LLOY.LN)
down 1%.
Also read:What's going on in Scotland, and what that means for
the pound
(http://www.marketwatch.com/story/pound-pushed-lower-as-scottish-referendum-worries-emerge-2017-02-27)
The FTSE 100's pullback came alongside the first loss in four
sessions for European shares
(http://www.marketwatch.com/story/european-stocks-edge-back-after-4-session-win-streak-2017-03-14)
and declines on Wall Street
(http://www.marketwatch.com/story/us-stocks-set-to-pull-back-with-fed-meeting-in-focus-2017-03-14)
.
"European and U.S. markets are suffering in a whirlwind of
anxiety, with the impending Article 50 activation, Dutch elections,
Fed rate hike and the issue of a second Scottish referendum all
feeding into market uncertainty," said Joshua Mahony, market
analyst at IG, in a note.
Raft of risks: The U.K. government moved a step closer to
triggering the start of the Brexit process with the passage of the
Article 50 bill on Monday. But May's triumph was ambushed by
Sturgeon's announcement that she would seek approval for an
independence vote before the U.K. leaves the EU.
On Wednesday, investors will watch to see if Geert Wilders'
far-right Party for Freedom will make a strong showing in the Dutch
elections, and if the Federal Reserve will come through with an
expected interest-rate increase.
Read: Who is the 'Dutch Trump' Geert Wilders, and why should
investors care?
(http://www.marketwatch.com/story/who-is-the-dutch-trump-geert-wilders-and-should-investors-be-worried-about-him-2017-03-10)
Also:A EUR60 billion bill and other hurdles for the U.K. in the
face of Brexit
(http://www.marketwatch.com/story/a-60-billion-bill-and-other-hurdles-for-the-uk-in-the-face-of-brexit-2017-03-13)
Bets that the Fed will raise interest rates again has
strengthened the dollar's value at the expense of the British pound
. But the pound has also been rocked lower as the U.K. gets closer
to Brexit negotiations with EU officials.
A weaker pound raises the prospect for higher earnings and
revenue made overseas by multinational companies listed in London.
The pound's slide since the Brexit vote in June has in turn pushed
the FTSE 100 to record highs.
The pound on Tuesday fell as low as $1.2109, down from $1.2218
late Monday in New York, hitting levels not seen since Jan. 17,
according to FactSet data
(http://www.marketwatch.com/story/uk-pound-slides-to-lowest-in-weeks-after-lawmakers-clear-a-path-for-brexit-2017-03-14).
"The pound has dropped...as European traders react with
uncertainty to the passing of the Article 50 bill," wrote Alexandra
Russell-Oliver, currency markets analyst at Caxton FX. Traders
still have "significant questions about what Brexit will look like
and what the implications will be, and the pound will stay
vulnerable until we get greater clarity."
Sterling traded at $1.2161 late Tuesday.
(http://www.marketwatch.com/story/who-is-the-dutch-trump-geert-wilders-and-should-investors-be-worried-about-him-2017-03-10)
Other movers: Prudential PLC (PRU.LN) rose 3% after the insurer
raised its dividend, posted a 7% rise
(http://www.marketwatch.com/story/prudential-raises-dividend-operating-profit-up-7-2017-03-14)
in 2016 operating profit and said it's on track to reach its
financial objectives for 2017.
Antofagasta PLC (ANTO.LN) said earnings rose 79% to $1.63
billion in 2016, aided by a strong performance at its Centinela
copper mine
(http://www.marketwatch.com/story/antofagasta-profit-up-on-copper-production-boost-2017-03-14).
The miner's shares turned higher, ending up 0.5%.
(END) Dow Jones Newswires
March 14, 2017 14:25 ET (18:25 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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