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London open: Stocks edge lower on oil price slump
London stocks dropped on Thursday as oil prices continued to slide and as investors awaited the release of UK retail sales figures.
Oil prices fell after the Energy Information Administration on Wednesday reported US crude stocks rose by 9.4 million barrels to 532.5 million barrels in the week ended 18 March. Analysts had forecast an increase of 2.5 million barrels.
Brent crude dipped 0.89% to $40.11 per barrel and West Texas Intermediate declined 1.2% to $39.29 per barrel at 0857 GMT.
“It’s been a relatively slow week in the markets so far, with trading volumes being naturally hit in the run up to the long bank holiday weekend,” said Craig Erlam, senior market analyst.
“Oil has been one of the few catalysts for the markets this week, which have been broadly stable barring the brief dash for safety following the tragic events in Brussels on Tuesday.”
Meanwhile, UK retail sales data at 0930 GMT is expected to show a 3.4% year-on-year increase in February.
In the US, Federal Reserve official James Bullard speaks at 1215 GMT in New York, initial jobless claims figures are due at 1230 GMT, durable goods orders will be released at 1230 GMT and Markit’s US manufacturing purchasing managers’ index is out at 1345 GMT.
In company news, Renishaw’s shares fell after the engineering company issued a profit warning due to a downturn in Asia.
Next slumped after warning the year ahead could be the toughest since 2008 as it reported is full year results. The fashion retailer issued new guidance for 2016 that includes the possibility that profits could decline as much as 4.5%.
Outsourcer Mitie slumped on Thursday after it warned that full year revenues will be below the current range of market expectations, although profit will fall within.
National Grid rallied a day after announcing its new UK executive director, appointing High Speed 1’s Nicola Shaw to the role.
Paddy Power Betfair gained after saying on Wednesday that chief operating officer Andy McCue will leave the company and cease to be a director with effect from 30 April.
