Oil Price Decline Weighs on FTSE 100 Index
London's energy heavyweights took a hit on Thursday as oil prices declined, weighing on the FTSE 100 index. The blue-chip index closed 0.8% lower after ending its six-session winning streak on Wednesday.
The decline was attributed to softening raw material prices, which affected companies like and . However, positive corporate prints in the insurance sector and overnight U.S. mega-cap earnings provided some relief. Trading desks navigated a complex mix of corporate earnings, industrial production data, and ex-dividend adjustments.
The Society of Motor Manufacturers and Traders (SMMT) reported that British vehicle production fell 11.6% year-on-year in July to 63,655 units. SMMT cited earlier-than-usual summer maintenance shutdowns at key assembly plants as a contributing factor.
The decline in oil prices had a stabilizing effect on crude oil prices, which rose 0.6% to $87.48 a barrel. Investors are holding cash ahead of the Jackson Hole Economic Policy Symposium, where Federal Reserve Chair Kevin Warsh will deliver his keynote address on Friday.