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Summary
- FTSE 100 was trading up by a quarter percent in the last leg of trade.
- Supermarket chain operator stocks are in green after JW Morrisons accepted a takeover bid by Fortress.
- Hospitality sectors stocks are trading positive ahead of a press conference by Prime Minister Boris Johnson on Covid-19 restrictions.
UK stock markets are trading in a range-bound trend today as investors remain cautious about crude oil prices and the OPEC meeting, which is set to resume today to finalise crude oil production output for the rest of the year. UK benchmark index FTSE 100 was up by 0.27% at 7142, while the mid-cap focused FTSE 250 was up by 0.95% at 22962, in the last leg of the trade.
European markets also traded flat, with the German blue-chip DAX index at 15663, up by 0.09%, and the French index CAC40 at 6579, up by 0.4%.
On Friday, the OPEC group voted on a proposal to increase crude oil production by roughly 2 million barrels per day from August to the end of the year. However, the UAE rejected the proposal stating that it wasn’t a good deal for the country.
Sectoral performance
Most of the stocks from the food retailing sector were in the green. JW Morrisons, up by 11.3%, was at an eight-year record high after it accepted a takeover bid by Fortress. Another US-based private equity firm is evaluating a possible offer for Morrisons, which could spark a bidding war for the UK supermarket chain. Other food retailers like Tesco Plc, was up by 2.63% at GBX 230.55 and J Sainsbury Plc traded at GBX 278, up by 2.21%.
Share of Pubs and Restaurants stocks are trading in positive terrain ahead of press conference by Prime Minister Boris Johnson on Covid-19 restrictions update. It is anticipated that the cap on the number of people allowed at hospitality venues like pubs, bars and restaurants could be lifted. Also, wearing a face mask could be made voluntary. Shares of Wetherspoon Plc was up by 3.65% at GBX 1280, Marston’s Plc was at GBX 93.4, up by 1.36%, and FTSE 250 listed Mitchells and Butlers Plc was up by 2.83% at GBX 298.20.
Economic development
IHS Markit/CIPS Purchasing Managers Index for the service sector has dipped slightly to 62.4 in June from 62.9 in May month. The British economy is expected to perform and grow faster this year after a high vaccination rate and huge monetary and fiscal stimulus from the government.
The Bank of England has already signalled that it will put a halt on providing economic support even as the inflation is above the 2% target set by the Central Bank.
US stock markets remain close on Monday for the Independence Day holiday.
Asia Pacific stocks market saw a mixed bag of trade with Shanghai Composite of China closing in green, up by 0.44% at 3534. Hong Kong’s Hang Seng index dipped by 0.59% and closed at 28143. Nikkei 225 of Japan also closed in red, down by 0.64% at 28598. Australia’s ASX200 closed at 7315, marginally up by 0.09%, while India’s Nifty 50 closed at 15834, up by 112 points.
WTI Crude oil August Future traded at USD 75.38 while the Brent Crude oil futures traded at USD 76.37. Gold August contract traded at USD 1791 per ounce.
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Tags: UK stock markets, FTSE100, JW Morrisons, Tesco Plc, WTI Crude oil, Mitchells and Butlers Plc, Brent Crude oil.
