FTSE 100 dips 1% as energy stocks slip and BT hits bottom
12:15 pm Tuesday, August 20th, 2024
By Khushi Singh and Purvi Agarwal
(Reuters) -The UK’s FTSE 100 ended 1% lower on Tuesday, as a third straight day of falling crude prices weighed on energy stocks, and BT dropped to the bottom of FTSE 100 after rival CityFibre struck a deal with Sky.
The blue-chip FTSE 100 index had its biggest one-day decline since Aug. 5, while the mid-cap FTSE 250 lost 0.8%.
Energy shares slipped 2.8%, leading sectoral declines, as oil prices responded to expectations of weak Chinese demand and efforts to agree a ceasefire deal in Gaza, potentially easing supply concerns. [O/R]
Sector majors Shell and BP fell nearly 3%, each.
Shares of telecom giant BT Group tumbled 6.4% after internet provider rival CityFibre signed a deal with BT’s existing partner Sky to launch Sky’s broadband services on the CityFibre network.
Gains were led by precious metal miners that added 0.8% as gold prices continued a record run, driven by a weaker dollar and growing investor confidence that the Federal Reserve will cut interest rates in September. [GOL/]
Among individual stocks, shares of i3 Energy jumped as much as 28% after Canada’s Gran Tierra Energy offered to buy the British oil and gas producer in a deal valued at 174.1 million pounds ($226.23 million).
Antofagasta gained marginally after the Chilean miner posted a rise of 5% in half-year profit.
Investors are focused on Fed Chair Jerome Powell’s speech at the annual Jackson Hole economic symposium in Wyoming later this week.
Purchasing managers index (PMI) numbers in the UK and U.S., alongside minutes of the Fed’s last meeting are also on the market’s radar in a relatively data-light week.
(Reporting by Khushi Singh, Purvi Agarwal in Bengaluru; Editing by Rashmi Aich and Barbara Lewis)
