FTSE 100 movers: Gold price dip takes shine off miners; Croda upgrade gives a glow
London's major shares were treading water on Wednesday ahead of the US Federal Reserve meeting where a rise in interest rates was widely anticipated.
A fall in gold futures hit miners as bond yields and the dollar both increased. Fresnillo, BHP Billiton and Randgold were all lower.
A stronger dollar makes the precious metal more expensive for buyers spending in other currencies.
Higher oil prices hit shares in British Airways owner IAG and budget airline easyJet, which rebounded off its early lows as investors reacted to reports that another 30,000 Ryanair customers will be hit by cancellations this Friday after cabin crew across six European countries launched strikes.
The potential impact of fuel price on IAG led to a downgrade from UBS to 'neutral' with a price target of 705p cut from 780p, pointed to rising fuel price with further potential headwinds given the potential impact on the supply of jet fuel from the incoming regulations from the United Nations' International Maritime Organization.
From January 2020, all ships will need to consume fuels containing less sulphur under the 'IMO 2020' rules, which is expected to lead to an initial demand surge from shippers for diesel-type products when the rules kick in.
Commodities traders say that as diesel is critical in determining the cost of normally more-expensive jet fuel, if that historic price relationship holds, then the aviation industry’s fuel bill could surge as well.
UBS also highlights rising airline industry capacity, "which could impact yields", with potential deterioration in North Atlantic yields and in-house forecast suggest a weak 2019 yield environment.
Smurfit Kappa shares were lower after the company on Monday said it was deconsolidating its Venezuelan arm following its temporary seizure by the state last month, resulting in a €60m euro write down in net assets.
Shares in specialty chemicals company Croda received a boost after an upgrade from Citigroup to 'neutral' from 'sell'. The broker said internet shopping habits had changed demand for personal care products.
Easyjet shares
Market Movers
FTSE 100 (UKX) 7,504.55 -0.04%
FTSE 100 - Risers
NMC Health (NMC) 3,552.00p 4.90%
Croda International (CRDA) 5,218.00p 2.84%
TUI AG Reg Shs (DI) (TUI) 1,430.00p 2.73%
easyJet (EZJ) 1,357.50p 1.80%
Shire Plc (SHP) 4,578.00p 1.38%
Kingfisher (KGF) 257.90p 1.14%
Royal Mail (RMG) 482.80p 1.13%
Centrica (CNA) 148.90p 1.05%
Direct Line Insurance Group (DLG) 330.60p 1.01%
Imperial Brands (IMB) 2,657.50p 0.97%
FTSE 100 - Fallers
Melrose Industries (MRO) 206.60p -3.50%
Fresnillo (FRES) 835.00p -3.02%
Smurfit Kappa Group (SKG) 2,982.00p -2.55%
Randgold Resources Ltd. (RRS) 5,324.00p -2.49%
Ocado Group (OCDO) 887.80p -2.07%
Vodafone Group (VOD) 165.94p -1.66%
Sage Group (SGE) 580.20p -1.56%
Intertek Group (ITRK) 4,885.00p -1.49%
Johnson Matthey (JMAT) 3,582.00p -1.49%
BHP Billiton (BLT) 1,674.00p -1.29%