London midday: FTSE falls further as energy shares drop, BT tumbles

(Sharecast News) - London stocks had fallen further by midday on Tuesday, with energy issues in the red as oil prices declined and BT under the cosh.

The FTSE 100 was down 0.7% at 8,300.63.

Danni Hewson, head of financial analysis at AJ Bell, said: "The FTSE 100 started off Tuesday on the back foot despite gains in the US and Asia overnight as its heavy weighting towards oil stocks proved a headwind.

"Hopes of a ceasefire in Gaza and continuing concerns about Chinese demand combined to drive oil prices to their lowest levels since the beginning of August and that put index heavyweights BP and Shell under pressure.

"While oil did dip below $76 around the beginning of August it has consistently traded above $80 per barrel for much of this year. If oil prices remain at these levels it could help reduce inflationary pressures and give central banks more room to make interest rate cuts.

"Tomorrow's minutes from the latest Federal Reserve meeting on rates provide a scene setter for Fed chair Jerome Powell when he addresses the Jackson Hole Symposium on Friday.

"Investors will be looking for Powell to give some indication of the trajectory of rates for the remainder of this year, with a cut widely expected at the Fed's September meeting as several Fed officials have given their own signals that such a move might be imminent.

"The expectations for a cut to US interest rates are helping gold, which remains in touching distance of its record levels above $2,500."

In equity markets, BT Group slumped after competitor CityFibre announced a long-term broadband partnership with Sky. Under the new agreement, Sky will offer its broadband to people on CityFibre's nationwide full fibre network.

BP and Shell gushed lower as oil prices neared their lowest levels this year amid hopes of a ceasefire in Gaza.

Wood Group reversed earlier losses as it said it swung to an operating loss in the first half as revenue fell, but the engineering firm backed its outlook for this year and the next.

In the six months to the end of June, Wood Group swung to a statutory operating loss of $899m from a profit of $23m in the same period a year earlier, with revenue down 4.8% to $2.8bn.

Market Movers

FTSE 100 (UKX) 8,300.63 -0.67% FTSE 250 (MCX) 21,112.68 -0.21% techMARK (TASX) 4,883.48 -0.61%

FTSE 100 - Risers

Glencore (GLEN) 413.95p 2.50% Rightmove (RMV) 540.80p 1.65% Scottish Mortgage Inv Trust (SMT) 866.80p 1.33% Rio Tinto (RIO) 4,798.50p 1.19% Taylor Wimpey (TW.) 163.40p 1.15% Sage Group (SGE) 1,027.00p 1.13% International Consolidated Airlines Group SA (CDI) (IAG) 173.85p 0.99% easyJet (EZJ) 439.10p 0.66% Land Securities Group (LAND) 633.50p 0.64% Smith & Nephew (SN.) 1,175.00p 0.56%

FTSE 100 - Fallers

BT Group (BT.A) 135.75p -6.77% Burberry Group (BRBY) 681.80p -2.96% Spirax Group (SPX) 7,385.00p -2.44% SEGRO (SGRO) 875.20p -2.32% Vodafone Group (VOD) 73.96p -2.04% Frasers Group (FRAS) 846.50p -1.91% BP (BP.) 433.80p -1.87% Shell (SHEL) 2,762.00p -1.81% JD Sports Fashion (JD.) 126.85p -1.55% B&M European Value Retail S.A. (DI) (BME) 442.80p -1.45%

FTSE 250 - Risers

Redrow (RDW) 797.00p 4.80% Endeavour Mining (EDV) 1,639.00p 3.08% Hochschild Mining (HOC) 184.40p 3.02% Baillie Gifford Japan Trust (BGFD) 740.00p 2.21% Fidelity European Trust (FEV) 403.00p 2.03% Allianz Technology Trust (ATT) 378.00p 1.89% Safestore Holdings (SAFE) 856.50p 1.84% Genuit Group (GEN) 460.50p 1.54% Serco Group (SRP) 173.80p 1.52% Kainos Group (KNOS) 1,086.00p 1.50%

FTSE 250 - Fallers

Ocado Group (OCDO) 368.50p -2.82% Close Brothers Group (CBG) 480.60p -2.36% Keller Group (KLR) 1,580.00p -2.11% Indivior (INDV) 935.50p -1.89% Watches of Switzerland Group (WOSG) 382.00p -1.80% Future (FUTR) 1,095.00p -1.71% PureTech Health (PRTC) 169.20p -1.63% Rathbones Group (RAT) 1,856.00p -1.59% XPS Pensions Group (XPS) 315.00p -1.56% Domino's Pizza Group (DOM) 297.00p -1.53%