This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/live/2015/dec/24/oil-price-stock-markets-pre-christmas-rally-business-live

The article has changed 11 times. There is an RSS feed of changes available.

Version 7 Version 8
Santa rally drives London stock market to three-week high- business live Santa Rally drives London stock market to three-week high - as it happened
(35 minutes later)
1.07pm GMT13:07
FTSE 100 hits three-week high.
Roll out the brandy butter and put on the party hats.
The London stock market has closed, and won’t reopen until Tuesday 28th.
It was a fairly subdued day’s trading, in truth. The FTSE 100 index of blue-chip shares has closed 13 points higher at 6254, a gain of 0.2%. Investors didn’t have much more to give, after driving shares up strongly yesterday.
Trading volumes were thin - with just 110 million shares bought and sold, compared to almost 600m yesterday.
But that’s still the highest close on the FTSE 100 since December 3rd. Not an epic Santa Rally, but better than a cold snowball in the face.
International packaging firm Mondi topped the FTSE 100 leaderboard – which rather sums up the humdrum nature of today’s trading session.
It was followed by BP, boosted by the recent recovery in the oil price, and mining firm Anglo American, which announced the sale of a coal mine in Australia to bolster its cash reserves.
London outperformed the rest of Europe - at least those parts where stock markets were still open. Over in Paris, the CAC 40 closed down 0.3%, or 15 points, at 4659.
Germany’s Frankfurt bourse remained closed - a sensible decision, it turns out.
Chris Beauchamp, senior market analyst at IG, sums up the mood:
Volumes are thin across Europe today, with some markets already shut for the holidays.
However, in London the session has seen the FTSE 100 add some small gains to its tally for the week, having seen a decent bounce over the last two days. Even now, miners are in the news, having dominated the agenda so much of late. Anglo American has managed to add some small change to its dwindling cash pile as it sells off a coal mine in Australia – disposals were a key theme for miners in recent months, and the fire sale will continue into the New Year.
It has not been a great year for the FTSE 100, which is currently down almost 5% since January, with the FTSE 250 coming out with an 8% gain so far.
And with that, dear readers, I have an appointment with Oxford Street. Hope you have a super Christmas. See you again soon. GW
12.49pm GMT12:4912.49pm GMT12:49
Love him or hate him, Yanis Varoufakis was undoubtedly one of the key figures of this year.Love him or hate him, Yanis Varoufakis was undoubtedly one of the key figures of this year.
Some see the former Greek finance minister as a valiant champion of anti-austerity polities, others blame him for driving Greece back into recession, capital controls and a tough third bailout.Some see the former Greek finance minister as a valiant champion of anti-austerity polities, others blame him for driving Greece back into recession, capital controls and a tough third bailout.
As the man himself tells the Guardian:As the man himself tells the Guardian:
“I regret that we were a failure. A heroic failure, but a failure nonetheless.”“I regret that we were a failure. A heroic failure, but a failure nonetheless.”
And with Varoufakis planning to launch a new political movement soon, we’ll surely hear more from him in 2016. Here’s our profile:And with Varoufakis planning to launch a new political movement soon, we’ll surely hear more from him in 2016. Here’s our profile:
Stories of 2015: Yanis Varoufakis, Syriza's anti-austerity motorbiker https://t.co/BDSoZU0R9BStories of 2015: Yanis Varoufakis, Syriza's anti-austerity motorbiker https://t.co/BDSoZU0R9B
12.15pm GMT12:1512.15pm GMT12:15
Marks & Spencer is feeling the pre-Christmas love.... its shares are now up 1.1%.Marks & Spencer is feeling the pre-Christmas love.... its shares are now up 1.1%.
They have fallen more than 10% this month, pushed down by fears that it might struggle this Christmas.They have fallen more than 10% this month, pushed down by fears that it might struggle this Christmas.
11.57am GMT11:5711.57am GMT11:57
So much for the oil price rebounding.... Brent crude is now down 1%, as its early gains evaporate.So much for the oil price rebounding.... Brent crude is now down 1%, as its early gains evaporate.
11.52am GMT11:5211.52am GMT11:52
Conner Campbell of SpreadEx says the markets look rather weary today, after posting a 2% jump on WednesdayConner Campbell of SpreadEx says the markets look rather weary today, after posting a 2% jump on Wednesday
Heading into the Christmas break with all the enthusiasm of someone who has received the ugliest jumper imaginable, the markets are failing to capitalise on yesterday’s super surge.Heading into the Christmas break with all the enthusiasm of someone who has received the ugliest jumper imaginable, the markets are failing to capitalise on yesterday’s super surge.
11.47am GMT11:4711.47am GMT11:47
Trading volumes in the City are exceptionally light.Trading volumes in the City are exceptionally light.
Just 73 million shares have changed hands so far - compared to an average of 588 million over the last few days. You’d almost think investors were busy getting ready for Christmas....Just 73 million shares have changed hands so far - compared to an average of 588 million over the last few days. You’d almost think investors were busy getting ready for Christmas....
Is there literally anyone left out there trading?Is there literally anyone left out there trading?
11.43am GMT11:4311.43am GMT11:43
Raindrops are now slouching their way down the windows of City offices, helping to dampen festive spirits among traders who made the trip into work.Raindrops are now slouching their way down the windows of City offices, helping to dampen festive spirits among traders who made the trip into work.
European markets are generally under a cloud too, with the Stoxx 600 index (which tracks the 600 biggest companies in Europe) now down 0.2%.European markets are generally under a cloud too, with the Stoxx 600 index (which tracks the 600 biggest companies in Europe) now down 0.2%.
11.31am GMT11:3111.31am GMT11:31
Rather like a festive reveller*, the London stock market is stumbling as it enters the final lap before Christmas.Rather like a festive reveller*, the London stock market is stumbling as it enters the final lap before Christmas.
The FTSE 100 is now up a measly 1 point, with one hour to go until the early Christmas finish. And oil’s early rally is fizzling out too....The FTSE 100 is now up a measly 1 point, with one hour to go until the early Christmas finish. And oil’s early rally is fizzling out too....
* - or so I hear....* - or so I hear....
11.23am GMT11:2311.23am GMT11:23
11.13am GMT11:1311.13am GMT11:13
Rather like the Ghost of Christmas Past, former Greek finance minister Yanis Varoufakis has made a festive appearance.....and dished out some rather unfestive comments.Rather like the Ghost of Christmas Past, former Greek finance minister Yanis Varoufakis has made a festive appearance.....and dished out some rather unfestive comments.
Speaking to Dutch newspaper de Volkskrant, Varoufakis claimed that Greece’s eurozone partners had deliberately forced the country into a third bailout by refusing to engage with the reforms he proposed.Speaking to Dutch newspaper de Volkskrant, Varoufakis claimed that Greece’s eurozone partners had deliberately forced the country into a third bailout by refusing to engage with the reforms he proposed.
As Varoufakis put it:As Varoufakis put it:
“It was a pure coup, one big coup. And that has succeeded“It was a pure coup, one big coup. And that has succeeded
As regular readers know all too well, the Greek saga played out at a series of crunch meetings in Brussels between Yanis and his fellow finance ministers.As regular readers know all too well, the Greek saga played out at a series of crunch meetings in Brussels between Yanis and his fellow finance ministers.
And he tells de Volkskrant that Germany’s representative, Wolfgang Schäuble, was to blame.And he tells de Volkskrant that Germany’s representative, Wolfgang Schäuble, was to blame.
He’s the puppet master who pulls all the strings. All the other ministers are marionettes. Schäuble is the grandmaster of the Eurogroup. He decides who becomes the president, he determines the agenda, he controls everything.”He’s the puppet master who pulls all the strings. All the other ministers are marionettes. Schäuble is the grandmaster of the Eurogroup. He decides who becomes the president, he determines the agenda, he controls everything.”
In contrast, eurogroup president Jeroen Dijsselbloem is dismissed as “a soldier, a puppet …In contrast, eurogroup president Jeroen Dijsselbloem is dismissed as “a soldier, a puppet …
He can’t make any decisions without calling Schäuble.”He can’t make any decisions without calling Schäuble.”
Here’s the full piece (in Dutch).Here’s the full piece (in Dutch).
Politico has pulled out some highlights.Politico has pulled out some highlights.
Varoufakis makes sure no Xmas cards will be exchanged with some of his ex #euro group colleagues https://t.co/FHMxPFQQ37 #GreeceVaroufakis makes sure no Xmas cards will be exchanged with some of his ex #euro group colleagues https://t.co/FHMxPFQQ37 #Greece
10.17am GMT10:1710.17am GMT10:17
And lo, there appeared some economic news....And lo, there appeared some economic news....
The number of UK mortgages approved in November has jumped by a fifth year-on-year, to 44,960.The number of UK mortgages approved in November has jumped by a fifth year-on-year, to 44,960.
That’s a slight slowdown on October’s 45,463, but suggests demand for housing remains robust.That’s a slight slowdown on October’s 45,463, but suggests demand for housing remains robust.
Mark Harris, chief executive of mortgage broker SPF Private Clients, says there’s no sign of the mortgage market slowing down:Mark Harris, chief executive of mortgage broker SPF Private Clients, says there’s no sign of the mortgage market slowing down:
It’s been a busy year for many brokers as borrowers take advantage of exceptionally low mortgage rates and seek guidance through the more complicated application process created by the Mortgage Market Review.It’s been a busy year for many brokers as borrowers take advantage of exceptionally low mortgage rates and seek guidance through the more complicated application process created by the Mortgage Market Review.
‘Remortgaging numbers in particular are rising, as borrowers wonder whether 2016 will finally bring that first interest rate rise for several years. While we are not convinced it will, those who would struggle to pay their mortgage if rates rise should consider a fixed rate. There are still some excellent deals to tempt borrowers although we may have seen the back of the very cheapest products.‘Remortgaging numbers in particular are rising, as borrowers wonder whether 2016 will finally bring that first interest rate rise for several years. While we are not convinced it will, those who would struggle to pay their mortgage if rates rise should consider a fixed rate. There are still some excellent deals to tempt borrowers although we may have seen the back of the very cheapest products.
10.05am GMT10:0510.05am GMT10:05
Despite today’s rally, Brent crude is still almost 50% lower than in May when it traded hands at $69 per barrel.Despite today’s rally, Brent crude is still almost 50% lower than in May when it traded hands at $69 per barrel.
For all the talk of an oil price bounce Brent Crude Oil is still only US $37.50! Who thought that a year ago? #DISINFLATIONFor all the talk of an oil price bounce Brent Crude Oil is still only US $37.50! Who thought that a year ago? #DISINFLATION
9.45am GMT09:459.45am GMT09:45
This chart, via CMC’s Jasper Lawler, shows how the amount of oil in storage climbed this year, forcing producers to cut the number of rigs in use:This chart, via CMC’s Jasper Lawler, shows how the amount of oil in storage climbed this year, forcing producers to cut the number of rigs in use:
It all started 13 months ago, when the Opec cartel decided to leave production levels unchanged in an apparent attempt to drive rivals out of business.It all started 13 months ago, when the Opec cartel decided to leave production levels unchanged in an apparent attempt to drive rivals out of business.
As Jasper points out, this cunning wheeze hasn’t really worked yet:As Jasper points out, this cunning wheeze hasn’t really worked yet:
OPEC’s wily plan to keep supplying the market with oil, drive prices to a level that will bankrupt the competition, which will in turn reduce output and lead to price recovery is taking a little longer than first imagined.OPEC’s wily plan to keep supplying the market with oil, drive prices to a level that will bankrupt the competition, which will in turn reduce output and lead to price recovery is taking a little longer than first imagined.
Just like its meeting over a year ago, the latest meeting of the Organisation of Petroleum Exporting Counties (OPEC) in December sent the oil price to new multi-year lows. This time OPEC failed to even agree on a quota. An apparent row between Saudi Arabia and Iran has led to the removal of any kind of production ceiling, which previously stood at 30m bpd.Just like its meeting over a year ago, the latest meeting of the Organisation of Petroleum Exporting Counties (OPEC) in December sent the oil price to new multi-year lows. This time OPEC failed to even agree on a quota. An apparent row between Saudi Arabia and Iran has led to the removal of any kind of production ceiling, which previously stood at 30m bpd.
So at least until the next OPEC meeting in the summer, oil prices must reflect no production ceiling. Oil plummeted 40% after OPEC’s decision in November 2014; an equivalent percentage plunge from the time of the December 2015 meeting would take it to around $25 per barrel.So at least until the next OPEC meeting in the summer, oil prices must reflect no production ceiling. Oil plummeted 40% after OPEC’s decision in November 2014; an equivalent percentage plunge from the time of the December 2015 meeting would take it to around $25 per barrel.
9.36am GMT09:369.36am GMT09:36
The Russian government will be pleased to see the oil price rallying this morning, given its reliance on crude exports.The Russian government will be pleased to see the oil price rallying this morning, given its reliance on crude exports.
The Russian currency has now dipped below 70 rubles to the US dollar, having hit a record low of 71.17 earlier this week.The Russian currency has now dipped below 70 rubles to the US dollar, having hit a record low of 71.17 earlier this week.
As this chart shows, the ruble has been through a torrid year, matching the slumping in the oil price:As this chart shows, the ruble has been through a torrid year, matching the slumping in the oil price:
Russia’s latest budget is based on an oil price of $50 per barrel, which looks rather optimistic given the current prices.Russia’s latest budget is based on an oil price of $50 per barrel, which looks rather optimistic given the current prices.
Analysts believe Moscow can cope, unless the rouble weakens by another third or so....Analysts believe Moscow can cope, unless the rouble weakens by another third or so....
Sergey Narkevich, an analyst at Promsvyazbank PJSC in Moscow, told Bloomberg that:Sergey Narkevich, an analyst at Promsvyazbank PJSC in Moscow, told Bloomberg that:
“It would take more than 90 rubles per dollar to provoke significant repercussions.”“It would take more than 90 rubles per dollar to provoke significant repercussions.”
Russia "risks meltdown" if ruble weakens past 90 to the dollar https://t.co/MBeI06GHfm pic.twitter.com/pdfn6QrK0wRussia "risks meltdown" if ruble weakens past 90 to the dollar https://t.co/MBeI06GHfm pic.twitter.com/pdfn6QrK0w
Updated at 9.57am GMTUpdated at 9.57am GMT
9.13am GMT09:139.13am GMT09:13
Shares in UK retailers are mainly down this morning, reflecting concerns that the festive period may not have been as merry as they’d like.Shares in UK retailers are mainly down this morning, reflecting concerns that the festive period may not have been as merry as they’d like.
Kingfisher, the parent company of Argos and Homebase, was leading the FTSE 100 fallers in early trading, down 1.3%. Tesco has lost 1%.Kingfisher, the parent company of Argos and Homebase, was leading the FTSE 100 fallers in early trading, down 1.3%. Tesco has lost 1%.
And in the FTSE 250 index of smaller companies, online retailer AO World are down 2%, followed by fashion chain Ted Baker (-1.4%) and cars-to-bikes firm Halfords (-1.4%).And in the FTSE 250 index of smaller companies, online retailer AO World are down 2%, followed by fashion chain Ted Baker (-1.4%) and cars-to-bikes firm Halfords (-1.4%).
The retail sector was rocked by yesterday’s profits warning from Game Digital. Its shares are down 4% today, having slumped by 40% on Wednesday after it admitted that demand for new console games was disappointing.The retail sector was rocked by yesterday’s profits warning from Game Digital. Its shares are down 4% today, having slumped by 40% on Wednesday after it admitted that demand for new console games was disappointing.
Retailers will now be hoping that the prospect of bargains will get people shopping.Retailers will now be hoping that the prospect of bargains will get people shopping.
As analyst Nick Bubb says:As analyst Nick Bubb says:
Apart from the wild-eyed men traditionally spotted in the perfume halls of the big department stores today, few people will need to pay full price for anything in the shops today and Online shoppers will be able to get stuck into the John Lewis Clearance Sale from 5pm onwards...Apart from the wild-eyed men traditionally spotted in the perfume halls of the big department stores today, few people will need to pay full price for anything in the shops today and Online shoppers will be able to get stuck into the John Lewis Clearance Sale from 5pm onwards...
Updated at 9.14am GMTUpdated at 9.14am GMT
8.40am GMT08:408.40am GMT08:40
Oil shares rise in LondonOil shares rise in London
Europe’s stock markets have opened rather cautiously today.Europe’s stock markets have opened rather cautiously today.
After surging by more than 150 points on Wednesday, Britain’s FTSE 100 has gained an extra 12 points at the open to 6253, a rise of 0.2%After surging by more than 150 points on Wednesday, Britain’s FTSE 100 has gained an extra 12 points at the open to 6253, a rise of 0.2%
Oil companies are among the risers, with BP and Royal Dutch Shell both up around 1%.Oil companies are among the risers, with BP and Royal Dutch Shell both up around 1%.
The French stock market has dipped by 0.2%, on what already feels like a quiet trading session.The French stock market has dipped by 0.2%, on what already feels like a quiet trading session.
Tony Cross, market analyst at Trustnet Direct, reckons that “pre-Christmas party fatigue” is kicking in....Tony Cross, market analyst at Trustnet Direct, reckons that “pre-Christmas party fatigue” is kicking in....
Volumes are expected to be thin over the next few hours, whilst data that might actually deliver any meaningful direction is also going to be hard to come by.Volumes are expected to be thin over the next few hours, whilst data that might actually deliver any meaningful direction is also going to be hard to come by.
8.34am GMT08:348.34am GMT08:34
A mince pie for Augustin Eden of Accendo Markets, who says that traders are “getting into the petroleum spirit of Christmas” today as they push oil higher.A mince pie for Augustin Eden of Accendo Markets, who says that traders are “getting into the petroleum spirit of Christmas” today as they push oil higher.
8.26am GMT08:268.26am GMT08:26
The rising oil price has helped push shares higher in Australia, where the stock market enjoyed a pre-Christmas bounce.The rising oil price has helped push shares higher in Australia, where the stock market enjoyed a pre-Christmas bounce.
The S&P/ASX 200 index jumped by 1.2%, its seventh consecutive day of gains.The S&P/ASX 200 index jumped by 1.2%, its seventh consecutive day of gains.
Energy shares led the rally, on relief that oil prices were bouncing back from their 11-year lows:Energy shares led the rally, on relief that oil prices were bouncing back from their 11-year lows:
8.18am GMT08:188.18am GMT08:18
The oil price is also benefitting from the news that US oil drillers reined in production last week.The oil price is also benefitting from the news that US oil drillers reined in production last week.
There were just 538 oil rigs in active service this week, three fewer than the previous week, according to the latest Baker Hughes rig count.There were just 538 oil rigs in active service this week, three fewer than the previous week, according to the latest Baker Hughes rig count.
A year ago, there were 961 - before the slump in oil prices forced many producers to cut back.A year ago, there were 961 - before the slump in oil prices forced many producers to cut back.
Analysts at Goldman Sachs predicts that output will fall in 2016:Analysts at Goldman Sachs predicts that output will fall in 2016:
The current rig count is... pointing to U.S. production declining sequentially between 2Q15 and 4Q15 by 320,000 barrels per day.”The current rig count is... pointing to U.S. production declining sequentially between 2Q15 and 4Q15 by 320,000 barrels per day.”
Updated at 8.19am GMTUpdated at 8.19am GMT
8.02am GMT08:028.02am GMT08:02
Oil price jumps in pre-Christmas rallyOil price jumps in pre-Christmas rally
After hitting eleven-year lows this week, the oil price is staging a rally this morning.After hitting eleven-year lows this week, the oil price is staging a rally this morning.
Crude prices are up in early trading, after new data showed fewer barrels are sitting in storage than expected.Crude prices are up in early trading, after new data showed fewer barrels are sitting in storage than expected.
Brent crude is leading the charge - a barrel of North Sea oil has jumped by 1.1%, or 44 cents, to $37.87.Brent crude is leading the charge - a barrel of North Sea oil has jumped by 1.1%, or 44 cents, to $37.87.
US crude is up almost 1% at $37.83.US crude is up almost 1% at $37.83.
Angus Nicholson of IG says:Angus Nicholson of IG says:
Judging by the moves in oil overnight, one could be forgiven for thinking that Santa’s sleigh runs on Light-Sweet Cushing, Oklahoma Crude.Judging by the moves in oil overnight, one could be forgiven for thinking that Santa’s sleigh runs on Light-Sweet Cushing, Oklahoma Crude.
But that’s not the real reason, kids.But that’s not the real reason, kids.
Instead the rally has been sparked by America’s Energy Information Administration, which reported yesterday that oil inventories fell by 5.9 million barrels last week.Instead the rally has been sparked by America’s Energy Information Administration, which reported yesterday that oil inventories fell by 5.9 million barrels last week.
The market had expected a rise of 1.1 million, so investors are revising their concerns about oversupply problems.The market had expected a rise of 1.1 million, so investors are revising their concerns about oversupply problems.
But there are still 484.78 million barrels in storage, according to the EIA, which is nearly a record high....But there are still 484.78 million barrels in storage, according to the EIA, which is nearly a record high....
Updated at 8.18am GMTUpdated at 8.18am GMT
7.48am GMT07:487.48am GMT07:48
Introduction: It's starting to look a lot like.....Introduction: It's starting to look a lot like.....
Good morning, and a Merry Christmas to you.Good morning, and a Merry Christmas to you.
After a dramatic year, we’ve finally reached the last trading day before the festive break.After a dramatic year, we’ve finally reached the last trading day before the festive break.
Some hardy traders are heading to their desks in the City, where the stock market will shut down at lunchtime.Some hardy traders are heading to their desks in the City, where the stock market will shut down at lunchtime.
But there may be more drama on the high streets, with retailers expecting plenty of shoppers ahead of tomorrow’s festivities. They’ll also be catching their breath after Wednesday -- which was the busiest shopping day of the year:But there may be more drama on the high streets, with retailers expecting plenty of shoppers ahead of tomorrow’s festivities. They’ll also be catching their breath after Wednesday -- which was the busiest shopping day of the year:
Related: Elves and shelves: how Tesco copes on the year's busiest food shopping dayRelated: Elves and shelves: how Tesco copes on the year's busiest food shopping day
Last night, European markets staged a strong rally - with the FTSE 100 surging by 2.6%.Last night, European markets staged a strong rally - with the FTSE 100 surging by 2.6%.
Today will probably be quieter, with shares likely to be little changed in London, Paris and Madrid. It’s going to be particularly quiet in Frankfurt or Milan too; the German and Italian markets are closed.Today will probably be quieter, with shares likely to be little changed in London, Paris and Madrid. It’s going to be particularly quiet in Frankfurt or Milan too; the German and Italian markets are closed.
Our European opening calls: $FTSE 6240 down 1 $DAX Closed $CAC 4678 up 3 $IBEX 9657 up 16 $MIB ClosedOur European opening calls: $FTSE 6240 down 1 $DAX Closed $CAC 4678 up 3 $IBEX 9657 up 16 $MIB Closed
CMC Markets’ Michael Hewson predicts....CMC Markets’ Michael Hewson predicts....
....a fairly lacklustre start to today’s holiday shortened European session, while on the data front it is expected to be a fairly light day.....a fairly lacklustre start to today’s holiday shortened European session, while on the data front it is expected to be a fairly light day.
But we can’t rule out some last minute ructions in the markets.But we can’t rule out some last minute ructions in the markets.
I’ll be tracking all the main events through the morning (and trying not to fret about finding a last-minute gift for Mrs W....)I’ll be tracking all the main events through the morning (and trying not to fret about finding a last-minute gift for Mrs W....)
Updated at 7.53am GMTUpdated at 7.53am GMT