Home Market FTSE 100 ends the day higher after Opec boosts oil stocks

FTSE 100 ends the day higher after Opec boosts oil stocks


The FTSE 100 ended the day higher after commodity stocks got a boost from today's Opec meeting.

Oil-producing companies agreed to increase oil supply by 1m barrels per day, or 600,000 barrels per day in real terms.

Chris Beauchamp, chief market analyst at IG, said that the deal seemed to please everyone.

"The Saudis get their higher output to appease the US president, and the Iranians and others get higher prices," he said.

"The increase does not entirely cancel out the problems with Venezuelas output and the sanctions on Iran,
so oils rally seems set to continue."

The FTSE 100 closed up over 125 points at 7,682.27.

This was despite yet another threat of tariffs from US President Donald Trump. He said he would place a 20 per cent tariff on all cars coming into the US in response to the EU's "trade barriers".

Based on the Tariffs and Trade Barriers long placed on the U.S. and it great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% Tariff on all of their cars coming into the U.S. Build them here!

— Donald J. Trump (@realDonaldTrump) June 22, 2018

It was more bad news for European car stocks, just a day after Daimler's profit warning had a knock-on effect for others in the industry.

But AstraZeneca, Shire and GlaxoSmithKline slipped into the red. David Madden, market analyst at CMC Markets UK, explained that bullish investors are ditching pharmaceutical stocks in favour of riskier investments.

Read more: Two years on: how Brexit has affected the UK economy

Shares in Burberry jumped in the afternoon after it announced the commencement of a share repurchase programme.

Retail stocks were given a slight push by the approval of House of Fraser's CVA, which some analysts believe could reduce competition for the likes of Debenhams.

Shares in Debenhams closed up more than seven per cent. Marks & Spencer climbed 1.4 per cent, while Next was 1.3 per cent higher.

Read more: Here's how the property industry reacted to House of Fraser's CVA


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