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FTSE 100 struggles on oil weakness

by LLB Reporter
23rd Nov 21 12:22 pm

A slump in the oil price as the US taps into its strategic reserves helped put the FTSE 100 on the back foot on Tuesday.

The air has been coming out of the market like a slowly deflating balloon over the last week or so but it has accelerated this morning, not helped by a sell-off in US technology stocks overnight.

This was linked to fears of more rapid tapering of financial stimulus and hikes to interest rates after Jerome Powell was re-nominated for another term as chair of the US Federal Reserve.

“The fourth wave of Covid being endured in parts of Continental Europe is prompting the reintroduction of restrictions and resulting civil unrest, threatening its economic recovery,” says AJ Bell investment director Russ Mould.

“In combination there’s plenty to make investors nervous as winter begins to bite. Some businesses continue to do quite nicely though. The ability for building materials firm CRH to push through price increases was notable with the company able to look forward to an infrastructure boom in the US.

“Newspaper publisher Reach’s digital-led strategy continues to bear fruit, as it continues to shake off fears that it is a business in terminal structural decline.”

 

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