Once it became clear that there was no agreement in Doha over the weekend and that the upside for crude oil was well and truly in the price the European bourses, having accepted that oil had fallen by 4%+, settled down, taking the modest backlash on the chin. Initially the FTSE 100 was down 1%, but has recovered, settling at 6321 – down 21 points at 2.28pm . However once oil stocks and their cousins in commodities eased as sectors by 3.5%, good sense quickly prevailed. Oil has settled down about 2% and mining by 1%. Market protagonists have ridden the punches. It is also interesting to relate that, despite hysterical comments by the Government, Chancellor Osborne and HM Treasury on the ramifications of BREXIT, equity investors seem calm and resolute and not bothered by exaggerated rhetoric.
Centrica, after disappointing customer figures in its trading statement, fell by 2.5%. Though there was little in the way of price dissemination, Unilever, Diageo and the media sector were quite strongly supported. Retail was somnolent – M&S -0.3%, Tesco -0.25% and Next -0.2%. Even the fact Morgan Stanley posted a 54% drop in profits, costs were lower and the results were better or less awful than expected – Punters took the stock up 3%. The DOW at the opening was down just 30 points.