BP and Shell were buoyed this morning by oil prices rising to a seven-year high above $80 per barrel, a record.
Russ Mould is AJ Bell’s investment director. He said that the decision of OPEC not to increase production volumes gave oil prices a boost into Tuesday. This helped the FTSE 100 make solid gains as index heavyweights BP, Shell and BP surged higher.
This was the result of a tech-led selloff in the US overnight as investors turned away the likes of Amazon, Apple and most importantly, Facebook, which had a terrible Monday.
After increasing revenue expectations for the year, Greggs, a high-street sausage roll maker and bellwether, was one of the brightest lights at London’s markets this morning.
The company has increased its presence in the UK but is looking to expand further. Investors are embracing this opportunity.
Mould said that sometimes you need to take risks in order to succeed in business. Greggs looked at central London in a slightly disorganized state and saw a huge opportunity. He plans to capitalize on the low property prices by expanding his footprint in the capital.
During the morning session, the company’s share price rose 5.71 percent.
London’s senior FTSE 100 index was helped by banks. The likes of Lloyds and Standard Charter were all up over 1.40 percent, likely due to expectations that rate hikes might be coming down.
Higher interest rates are a boon for financial institutions, as they increase their net interest margins. This is a crucial source of income.
London’s strong performance was extended to European markets. The Dax 30 in Germany and the Stoxx 600 in Europe were both up 0.40 percent and 0.63 percent, respectively.
Today, the pound was generally flat against the dollar.
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