Business Irish

Wednesday 21 February 2018

FTSE rises while oil hits one-month high

The price of oil jumped to its highest in a month. Photo: Reuters
The price of oil jumped to its highest in a month. Photo: Reuters

Sean Duffy

On commodities markets, the price of oil jumped to its highest level in almost a month. Investor sentiment was boosted by speculation that producers are to take action on the issue of oversupply.

Russian Energy Minister Alexander Novak bolstered hopes that oil-producing nations could take action to stabilise prices, telling a Saudi newspaper that his country was consulting with Saudi Arabia and other producers to achieve market stability.

The London FTSE100 index rose to a 14-month high, spurred on by the improvement in oil prices. The index closed up 0.3pc at 6944.

The German DAX rose by 0.25pc, while the Nikkei was down 0.4pc after reports suggested that the Bank of Japan will adjust its monetary-easing efforts in response to falling prices. The French CAC was flat in yesterday's trading.

In Dublin, the overall ISEQ index of Irish shares was down slightly, closing at 6045.83.

Insurance group FBD continued its upward trend from last week, with the stock gaining 2.1pc yesterday.

Applegreen shares rose 1.2pc. The day's laggards included food producer Aryzta, which lost over 3pc, and Ryanair, whose share price dipped by 1.5pc.

On the currency markets, the euro gained 0.4pc on the dollar, and was trading at $1.11.

The pound was flat against the Greenback at $1.28. Sterling fell further against the euro however, losing 0.6pc to trade at €1.15. Meanwhile, the Bank of England announced it had purchased another £1.1bn in 10-year Gilts. The BoE's quantitative-easing programme has ensured that yields on UK Treasury bills are currently near record lows, with the return on 10-year bonds now at 0.53pc.

Irish Independent

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