FTSE 100 movers: Energy shares rally but AB Foods slumps
London’s FTSE 100 was up 1.8% to 6,824.28 in afternoon trade on Friday, recovering from heavy falls in the previous session, with rallying oil prices providing an added boost.
Wood Group and Royal Dutch Shell were among the risers as oil prices surged more than 4% on reports that the Organisation of Petroleum Exporting Countries, and Russia and Kazakhstan, which together are known as OPEC+, will cut their combined output by 1.2m barrels of oil a day.
Neil Wilson, chief market analyst at Markets.com, said: "We’ve seen crude prices rally this hard because the deal is better than the 1m bpd being talked up earlier.
"The cut is a real positive after some fairly tough negotiations. The fact that the OPEC-Russia alliance is still holding matters as much as the details of the deal itself.
"It’s probably a little better than the market had been expecting, but not by a lot. I’d still say that a deeper cut would be needed to really see oil rally back to $70. Indeed the rally has failed to top the daily peaks seen on Dec 4th and 5th, which is indicative of the fact the market is not fully bought into this deal as being enough to tilt the market fundamentally back into balance quickly."
Miners were also on the rise following heavy losses on Thursday, with Glencore and Anglo American both higher.
Elsewhere, Tesco jumped higher following an upgrade to ‘neutral’ from ‘underperform’ at Exane BNP Paribas on valuation grounds.
On the downside, Associated British Foods was the worst performer as it said that its Primark retail arm endured a "challenging" period of trading last month but expectations for annual profits growth remain unchanged. In a statement ahead of its annual shareholder meeting, the FTSE 100 conglomerate repeated its guidance for adjusted earnings per share for the group to be flat for the full year.
AstraZeneca was in the red after saying that its immunotherapy Imfinzi did not meet the main goals of a late-stage study for the treatment of advanced head and neck cancer.
FTSE 100 - Risers
Evraz (EVR) 492.00p 6.08%
Wood Group (John) (WG.) 636.40p 5.82%
Scottish Mortgage Inv Trust (SMT) 486.05p 4.98%
Glencore (GLEN) 283.80p 4.76%
Anglo American (AAL) 1,629.60p 4.70%
CRH (CRH) 2,081.00p 4.49%
Tesco (TSCO) 202.30p 4.41%
Just Eat (JE.) 557.80p 4.26%
Royal Dutch Shell 'B' (RDSB) 2,393.50p 4.00%
Royal Dutch Shell 'A' (RDSA) 2,365.00p 3.96%
FTSE 100 - Fallers
Associated British Foods (ABF) 2,248.00p -4.34%
Shire Plc (SHP) 4,562.50p -1.03%
AstraZeneca (AZN) 5,933.00p -0.37%
GVC Holdings (GVC) 680.50p -0.22%
Informa (INF) 662.80p 0.00%
Imperial Brands (IMB) 2,352.00p 0.02%
Halma (HLMA) 1,322.00p 0.15%
Marks & Spencer Group (MKS) 283.50p 0.18%
Lloyds Banking Group (LLOY) 54.83p 0.26%
Direct Line Insurance Group (DLG) 311.40p 0.26%