Shares on the FTSE 100 index suffered a setback today largely because the continued pressure on oil prices is beginning to take its toll on firms such as British Airways.
The FTSE 100 index closed down at its lowest level for two months, having lost 50 points or 1.1%, to 4,564.5, as the oil price retreated later in the day from continuing losses, albeit the retreat was by this stage too late. Earlier in the day, New York oil future rose to $55.67 a barrel but dropped back to $54.62 just before close of business in London, thanks largely to the Norwegian government’s move to tackle a dispute between its own unions and companies.
Shares of British Airways dropped 2.25p or 1.09% to 203.75, having earlier in the day fallen as much as 2.2% while rival Ryanair Holdings Europe's biggest low-cost airline, also lost 4c or 1.2 percent, to 3.71 euros.
Manchester United eventually closed down fell 6p or 2.1% to 277.75p after the club ended talks with US billionaire Malcolm Glazer.
Somerfield dropped 2.75p or 2.04%, to 131.75 as the owner of the Kwik Save and Somerfield grocery chains agreed to buy 114 Safeway stores from Morrison’s Supermarkets £260.2m.
And United Business Media plummeted 16.75p or 3.56% to 453.5p after the publisher of Information Week said advertising page volume at its US technology publications unit fell at least 10% last month as firms are cutting back on their spending again.
In the US, all three main indices are down on Monday afternoon, in part as a result of the oil price.
The Dow Jones is currently down 27 points or 0.28% to 9,730 while the Nasdaq Composite index has lost 8 points or 0.43% to 1,906 and the S&P 500 index is off 4 points or 0.39% to 1,091.IFAonline
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