Market Pulse - Commodities
Commodity prices were on the backfoot on Thursday, with weakness in energy and metals futures offsetting a small bid in the agricultural space.
Premier Oil surprised markets on Thursday, announcing its intention to sell its stake in the Zama field offshore Mexico in a bid to further reduce its debt pile.
US oil stockpiles fell by more than expected last week on the back of a sharp drop in net imports.
Commodity prices were edging higher in the middle of the week, buoyed by data showing a larger than expected drop in US crude oil inventories and an improved risk appetite in financial markets.
Analysts at Canaccord Genuity raised their target price on shares of Tullow Oil following the oil explorer's recent success at the Jethro-1 exploration well offshore Guyana.
Galileo Resources is set to apply for a mining permit for its Star Zinc Project near Lusaka, Zambia, after completing an initial inferred resource estimate on Wednesday that supported its initial estimates.
Oil and gas exploration and production company Caspian Sunrise has inked a contract with an unnamed international oil trading group for the sale of 29,000 barrels of oil in September.
Xtract Resources on Tuesday reported positive assay results from preliminary sampling of mine tailings at the Kalengwa copper project in Zambia.
Keras Resources on Tuesday confirmed the start of a major drill programme announced by its investee company Calidus Resources at its flagship Warrawoona Gold Project in the Pilbara region of Western Australia.
Cadence Minerals shares jumped on Tuesday as it announced the granting of an environmental permit for the Yangibana Rare Earths Project in the Gascoyne region of Western Australia.
Cabot Energy's shares slid on Tuesday after it reported a steep decline in second quarter production and sales as cost-cutting efforts took their toll on operations.
Strength in energy futures helped offset weakness in metals and agricultural futures at the start of the week amid more positive news headlines on global trade and speculation of further policy easing by several of the world's major central banks.
The US Department of Commerce will extend its temporary general licence for Chinese telecommunications equipment giant, Huawei, for another 90 days.
The FTSE 100 finished the session 109. 57 points lower to 7,117. 15.
The economic calendar will be exceedingly thin over the coming week and back-end loaded but with several potential key risk events strewn across investors's paths.
Analysts at RBC Capital Markets upped their target price on shares of Cairn Energy from 185p to 195p on Friday, stating the group was "well positioned" to weather the current "macro storm".
A top European Central Bank official argued at the end of the week for the monetary authority to err on the side of caution and deliver a larger than expected does of monetary stimulus when policymakers next met.
A widely-followed proxy for commodity prices continued to flirt with its 52-week lows on Thursday amid ongoing strength in the US dollar against a backdrop of choppy trading in stockmarkets around the world as China said it would retaliate against the latest round of US trade tariffs and President Donald Trump responded that any deal had to be on American terms.
Analysts at Berenberg initiated coverage on Jadestone Energy at 'buy' on Thursday, stating that the company's efforts to turn around mature assets that had been neglected by their previous owners during the downturn would lead to the stock's re-rating if successful.
Analysts at Jefferies gave the 'thumbs up' to Burford Capital's response to shareholder concerns about governance, reiterating their 'buy' recommendation and 2,400p target price for the shares.