FTSE 100 falls in quiet trade, USD firm, Oil up ahead of OPEC By Investing.com

Key Points

• FTSE 100 closing price of 7040.2, -0.67%
• Morrisons shares higher as shareholder open to higher offer
• UK/EU Sausage War ended, for now
• Oil higher ahead of OPEC+ meeting
• Bitcoin steady around $35,000

By Samuel Indyk

Investing.com – The FTSE 100 started off on the front foot (maybe the euphoria of England’s win against Germany was still on the minds of traders) before turning negative within the first hour after failing to hold above 7,100.

Shares in supermarket chain Morrisons (LON:MRW) gained around 5% after comments from tenth biggest shareholder JO Hambro Capital, who said offers approaching 270 pence per share would merit engagement and consideration. This came after the company recently rejected an approach from CDR for 230 pence per share.

Airlines and travel stocks regained some lost ground after recent selling pressure amid fears international travel won’t be able to return to normal in time for the summer. However, the UK Prime Minister Johnson is set to meet his German counterpart to discuss travel restrictions later this week.

“What we hope is that the vaccine rollout programme, the double jabs programme, will enable people to start flying,” Johnson said in parliament, “and really give that [aviation] industry the prospect of a long-term sustainable recovery.”

GBP benefitted from reports news that the EU and UK had agreed a further extension to a grace period for customs checks on chilled meats moving to Northern Ireland, ending the so-called “Sausage War”, for now. However, GBP/USD gains were muted amid broad USD strength and as the agreement is only a temporary solution and there remains issues on how the arrangement will work when the period ends.

WTI and Brent crude futures both gained as the OPEC+ JMMC meeting was pushed back a day to allow the countries more time to reach a common position on whether to add more oil to the market in August.

The Energy Information Administration (EIA) said US crude stockpiles fell 6.718mln barrels in the latest week, compared to a drawdown of 4.686mln barrels, which also helped oil prices trade higher.

Cryptocurrencies were relatively stable with Bitcoin flirting around the $35,000 level, and even briefly trading above $36,000 before paring gains. The market remains relatively directionless with Bitcoin happy to trade in the recent $30,000-$40,000 range, apart from some brief moments where it has poked its head out before returning.

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