Markets Recover from Volatile Day Amid Election Jitters and Crude Oil Price Dip

Strategic Insights -

The oil price took a sudden dip after its recent gains, giving transport groups a temporary boost as hopes of cheaper fuel costs rose. The price of Brent crude slipped 2.2% to $66.26, pushing BP and Royal Dutch Shell lower. However, Carnival, a cruise operator, climbed 108p to £30.11, while British Airways owner International Airlines Group added 17p to 562p. EasyJet rose 48p to £18.21 after it announced a 3.8% year-on-year rise in passenger numbers for April, despite 602 flights being cancelled due to a French air traffic controllers' strike.

Key Takeaways:

  • The FTSE 100 closed down 46.79 points at 6886.95 after earlier falling as low as 6810.05, but shares recovered due to better-than-expected US jobs claims and a reversal in German bund and oil prices.
  • Insurers performed well, with RSA Insurance up 9.3p to 427.3p and Aviva adding 13.5p to 527p after their latest updates.
  • Legal & General rose 2.9p to 262p and Standard Life was 4.9p better at 466.1p.
  • SABMiller jumped 124.5p to £35.31 on revived talk of a possible bid from Anheuser-Busch Inbev, Warren Buffett, and investment group 3G Capital.
  • Morrisons lost 12.4p to 176.9p after another disappointing sales performance, despite 9.62p of the fall being due to the shares going ex-dividend.
  • Tesco slipped 3.1p to 223.7p as Shore Capital suggested a fundraising might be necessary at some point in the medium term.
  • Telecity jumped nearly 22% to £10.95 after opening talks with US business Equinix about a £2.3bn takeover.

Statistics:

  • The FTSE 100 closed down 46.79 points at 6886.95.
  • EasyJet rose 48p to £18.21 after announcing a 3.8% year-on-year rise in passenger numbers for April.
  • SABMiller jumped 124.5p to £35.31.
  • Morrisons lost 12.4p to 176.9p after its sales performance.
  • Tesco slipped 3.1p to 223.7p.
  • Telecity jumped 22% to £10.95 after announcing talks with Equinix about a £2.3bn takeover.

Sources:

  • Nick Fletcher, "FTSE 100 suffers losses as investors await election outcome", (Source not provided)
  • Tony Cross, market analyst at Trustnet Direct, as quoted by Nick Fletcher, "FTSE 100 suffers losses as investors await election outcome", (Source not provided)
  • Clive Black, analyst, as quoted by Nick Fletcher, "FTSE 100 suffers losses as investors await election outcome", (Source not provided)
  • Nick Fletcher, "FTSE 100 suffers losses as investors await election outcome", (Source not provided)
  • Business reports from financial news agencies (exact sources not provided)