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You can find the current article at its original source at https://www.theguardian.com/business/live/2017/jun/07/santander-banco-popular-rescue-oecd-growth-forecasts-business-live
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| Santander rescues Spain's failing Banco Popular, oil prices slide - business live | Santander rescues Spain's failing Banco Popular, oil prices slide - business live |
| (35 minutes later) | |
| 5.50pm BST | |
| 17:50 | |
| European markets slip | |
| It was a down day for European shares ahead of Thursdays key events, the UK election, the European Central Bank meeting and ex-FBI director James Comey’s testimony. A slide in the euro unnerved European stocks while conversely, a strong pound helped push the FTSE 100 lower. Energy and commodity companies were also under pressure after a slide in the oil price following a surprise jump in US crude stocks. The final scores showed: | |
| The FTSE 100 finished down 46.33 points or 0.62% at 7478.62 | |
| Germany’s Dax dipped 0.14% to 12,672.49 | |
| France’s Cac closed 0.07% lower at 5265.53 | |
| Italy’s FTSE MIB fell 0.1% to 20,739.91 | |
| Spain’s Ibex ended down 0.07% at 10,871.7 | |
| In Greece, the Athens market slipped 0.42% to 774.29 | |
| On Wall Street, the Dow Jones Industrial Average is currently down 7 points or 0.04%. | |
| On that note, it’s time to close for the day. Thanks for all your comments, and we’ll be back tomorrow. | |
| 5.38pm BST | |
| 17:38 | |
| Back with the oil price reaction to the surprise rise in US crude stocks: | |
| Whopping 20K lots changed hands in #Brent 1min after @EIAgov. To give you an idea of how huge this is look at this. + volume than #OPEC day pic.twitter.com/b9InVyf9Cq | |
| 5.00pm BST | 5.00pm BST |
| 17:00 | 17:00 |
| The pound rose to a two week high against the dollar, as investors became more convinced that the Conservatives would win Thursday’s UK election despite their poll lead narrowing. | The pound rose to a two week high against the dollar, as investors became more convinced that the Conservatives would win Thursday’s UK election despite their poll lead narrowing. |
| Sterling touched $1.2967 against the dollar, before slipping back to its current level of $1.2936, still up 0.22%. Against the euro, it is up 0.6% at €1.1513. | Sterling touched $1.2967 against the dollar, before slipping back to its current level of $1.2936, still up 0.22%. Against the euro, it is up 0.6% at €1.1513. |
| Connor Campbell, financial analyst at Spreadex, said there were also other factors at work in sterling’s favour: | Connor Campbell, financial analyst at Spreadex, said there were also other factors at work in sterling’s favour: |
| The pound found some extra energy this afternoon, though it’s not quite clear whether the currency is being driven higher by home-grown news or events elsewhere. | The pound found some extra energy this afternoon, though it’s not quite clear whether the currency is being driven higher by home-grown news or events elsewhere. |
| Against both the dollar and the euro sterling jumped half a percent, suggesting that the election-jitters that have bothered the pound for the last fortnight or so have subsided. However, there are potentially other explanations for its growth. The euro has been hit by reports that the ECB is preparing to cut its inflation forecasts, something that would further kick the rate hike can down the road. In the US, meanwhile, the dollar is gearing up for tomorrow’s testimony from former FBI chief James Comey, an event that could destabilise an already shaky White House. | Against both the dollar and the euro sterling jumped half a percent, suggesting that the election-jitters that have bothered the pound for the last fortnight or so have subsided. However, there are potentially other explanations for its growth. The euro has been hit by reports that the ECB is preparing to cut its inflation forecasts, something that would further kick the rate hike can down the road. In the US, meanwhile, the dollar is gearing up for tomorrow’s testimony from former FBI chief James Comey, an event that could destabilise an already shaky White House. |
| 4.55pm BST | 4.55pm BST |
| 16:55 | 16:55 |
| Here’s Reuters on the rise in US crude stocks: | Here’s Reuters on the rise in US crude stocks: |
| Oil prices slid more than 3 percent on Wednesday after the U.S. government reported an unexpected increase in inventories of crude and gasoline, fanning fears that output cuts by major world oil producers have not drained the global crude glut very much. | Oil prices slid more than 3 percent on Wednesday after the U.S. government reported an unexpected increase in inventories of crude and gasoline, fanning fears that output cuts by major world oil producers have not drained the global crude glut very much. |
| Crude stocks in the United States grew 3.3 million barrels to 513 million barrels, according to the U.S. Energy Information Administration (EIA). That confounded forecasters who had predicted a drop of 3.5 million barrels, especially a day after preliminary data from the American Petroleum Institute indicated an even bigger drop. | Crude stocks in the United States grew 3.3 million barrels to 513 million barrels, according to the U.S. Energy Information Administration (EIA). That confounded forecasters who had predicted a drop of 3.5 million barrels, especially a day after preliminary data from the American Petroleum Institute indicated an even bigger drop. |
| Gasoline inventories also unexpectedly rose, imports increased, and exports dropped, the EIA data showed... | Gasoline inventories also unexpectedly rose, imports increased, and exports dropped, the EIA data showed... |
| “Flagging gasoline demand continues to bedevil the market. With gasoline currently the seasonal leader of the complex, its weakness is dragging everything down,” said John Kilduff, partner at Again Capital in New York. | “Flagging gasoline demand continues to bedevil the market. With gasoline currently the seasonal leader of the complex, its weakness is dragging everything down,” said John Kilduff, partner at Again Capital in New York. |
| Prices slid even as some in the market remained concerned about the move by OPEC members Saudi Arabia and the United Arab Emirates to cut diplomatic and transport ties with Qatar, an OPEC member that had agreed to cut only about 30,000 barrels a day as part of Organization of the Petroleum Exporting Countries agreement to reduce output. | Prices slid even as some in the market remained concerned about the move by OPEC members Saudi Arabia and the United Arab Emirates to cut diplomatic and transport ties with Qatar, an OPEC member that had agreed to cut only about 30,000 barrels a day as part of Organization of the Petroleum Exporting Countries agreement to reduce output. |
| However, analysts saw a risk that rivalries between OPEC members could weaken the production cut agreement. Some were already concerned about rising production from Libya and Nigeria, which are exempt from the agreement. | However, analysts saw a risk that rivalries between OPEC members could weaken the production cut agreement. Some were already concerned about rising production from Libya and Nigeria, which are exempt from the agreement. |
| OPEC has pledged to cut almost 1.8 million barrels per day (bpd) to help reduce global inventories. | OPEC has pledged to cut almost 1.8 million barrels per day (bpd) to help reduce global inventories. |
| 4.20pm BST | 4.20pm BST |
| 16:20 | 16:20 |
| The 15.5 million barrels build-up in total U.S. #oil stocks (crude + all products) is the largest for any week since early 2008 #OOTT #OPEC pic.twitter.com/E689nnwLuH | The 15.5 million barrels build-up in total U.S. #oil stocks (crude + all products) is the largest for any week since early 2008 #OOTT #OPEC pic.twitter.com/E689nnwLuH |
| 3.55pm BST | 3.55pm BST |
| 15:55 | 15:55 |
| More on the US inventory figures: | More on the US inventory figures: |
| pic.twitter.com/DL63SwmTad | pic.twitter.com/DL63SwmTad |
| 3.52pm BST | 3.52pm BST |
| 15:52 | 15:52 |
| The drop in the oil price following the unexpected increase in US crude stocks has also had an impact on stock markets. | The drop in the oil price following the unexpected increase in US crude stocks has also had an impact on stock markets. |
| The FTSE 100, which had been just marginally lower, is now down 41 points or 0.56% while Germany’s Dax has dipped into the red. In the US the Dow Jones Industrial Average is now virtually unchanged after its earlier gains, up just 1.2 points. | The FTSE 100, which had been just marginally lower, is now down 41 points or 0.56% while Germany’s Dax has dipped into the red. In the US the Dow Jones Industrial Average is now virtually unchanged after its earlier gains, up just 1.2 points. |
| Updated | Updated |
| at 4.15pm BST | at 4.15pm BST |
| 3.47pm BST | 3.47pm BST |
| 15:47 | 15:47 |
| A sharp and surprising rise in US stockpiles - and you get a chart like this one. https://t.co/hjjHhFmk2N | A sharp and surprising rise in US stockpiles - and you get a chart like this one. https://t.co/hjjHhFmk2N |
| 3.46pm BST | 3.46pm BST |
| 15:46 | 15:46 |
| Brent crude is now down more than 3% at $48.46 a barrel while West Texas Intermediate - the US benchmark - has dropped 4.6% to $45.95. | Brent crude is now down more than 3% at $48.46 a barrel while West Texas Intermediate - the US benchmark - has dropped 4.6% to $45.95. |
| 3.43pm BST | 3.43pm BST |
| 15:43 | 15:43 |
| U.S. commercial crude #oil inventories for week ending 6/02/17 UP 3.3 MMbbl, refinery utilization= 94.1% https://t.co/O5s2MRItwQ #energy | U.S. commercial crude #oil inventories for week ending 6/02/17 UP 3.3 MMbbl, refinery utilization= 94.1% https://t.co/O5s2MRItwQ #energy |
| The surprise rise in US crude stocks contradicts Tuesday’s report from the API showing a decline in inventories. | The surprise rise in US crude stocks contradicts Tuesday’s report from the API showing a decline in inventories. |
| API ≠ EIA #crude #oil | API ≠ EIA #crude #oil |
| 3.35pm BST | 3.35pm BST |
| 15:35 | 15:35 |
| Oil prices lose more ground on surprise rise in US crude stocks | Oil prices lose more ground on surprise rise in US crude stocks |
| Oil prices were already on the slide after the blockade imposed on Qatar by its neighbours, with analysts concerned the rift could impede Opec’s agreement to curb production. | Oil prices were already on the slide after the blockade imposed on Qatar by its neighbours, with analysts concerned the rift could impede Opec’s agreement to curb production. |
| Now they have come under more pressure following a surprise rise in US crude stocks. According to the Energy Information Administration, US crude inventories rose by 3.3m barrels last week to 513.21m, compared to forecasts of a 3.46m decline. | Now they have come under more pressure following a surprise rise in US crude stocks. According to the Energy Information Administration, US crude inventories rose by 3.3m barrels last week to 513.21m, compared to forecasts of a 3.46m decline. |
| Gasoline stocks rose 3.32m, well ahead of the expected 0.58m increase. | Gasoline stocks rose 3.32m, well ahead of the expected 0.58m increase. |
| Brent crude has fallen to its lowest level since early May following the EIA report. | Brent crude has fallen to its lowest level since early May following the EIA report. |
| 2.42pm BST | 2.42pm BST |
| 14:42 | 14:42 |
| Meanwhile the pound is now up 0.2% against the dollar at $1.2933, while the dip in the euro on reports that the European Central Bank might cut its inflation outlook on Thursday has helped the pound gain 0.59% to €1.1512 against the single currency. | Meanwhile the pound is now up 0.2% against the dollar at $1.2933, while the dip in the euro on reports that the European Central Bank might cut its inflation outlook on Thursday has helped the pound gain 0.59% to €1.1512 against the single currency. |
| Updated | Updated |
| at 2.54pm BST | at 2.54pm BST |
| 2.38pm BST | 2.38pm BST |
| 14:38 | 14:38 |
| Wall Street edges higher | Wall Street edges higher |
| US markets have opened in positive territory, but investors remain cautious ahead of Thursday’s triple whammy of the UK election, the European Central Bank meeting and - of more concern to Wall Street - the testimony of ex-FBI boss James Comey. | US markets have opened in positive territory, but investors remain cautious ahead of Thursday’s triple whammy of the UK election, the European Central Bank meeting and - of more concern to Wall Street - the testimony of ex-FBI boss James Comey. |
| The Dow Jones Industrial Average is currently up 24 points or 0.12%, while the S&P 500 opened up 0.13% and the Nasdaq Composite 0.27%. | The Dow Jones Industrial Average is currently up 24 points or 0.12%, while the S&P 500 opened up 0.13% and the Nasdaq Composite 0.27%. |
| US stocks open slightly higher as Wall Street awaits Comey testimony, Trump infrastructure remarks https://t.co/9oCvtHK6kk pic.twitter.com/C30MC6fNiv | US stocks open slightly higher as Wall Street awaits Comey testimony, Trump infrastructure remarks https://t.co/9oCvtHK6kk pic.twitter.com/C30MC6fNiv |
| 2.32pm BST | 2.32pm BST |
| 14:32 | 14:32 |
| WPP, whose boss Sir Martin Sorrell earlier received a rough ride from shareholders over his pay packet and his own future at the company, is the biggest faller in the FTSE 100. | WPP, whose boss Sir Martin Sorrell earlier received a rough ride from shareholders over his pay packet and his own future at the company, is the biggest faller in the FTSE 100. |
| That’s less to do with the annual meeting outcome and more to do with the trading statement issued alongside it. This showed a slightly slowdown in like for like sales growth of 0.7% in the first four months of the year (January to April), down from 0.8% in the first quarter (January to March). Analysts at Jefferies said: | That’s less to do with the annual meeting outcome and more to do with the trading statement issued alongside it. This showed a slightly slowdown in like for like sales growth of 0.7% in the first four months of the year (January to April), down from 0.8% in the first quarter (January to March). Analysts at Jefferies said: |
| One month is not a trend, but these numbers are in focus given the concern around FMCG [fast moving consumer group] spending, US growth in light of the account losses (VW and AT&T) and the weaker start to the year that WPP had in Asia. | One month is not a trend, but these numbers are in focus given the concern around FMCG [fast moving consumer group] spending, US growth in light of the account losses (VW and AT&T) and the weaker start to the year that WPP had in Asia. |
| 2.16pm BST | 2.16pm BST |
| 14:16 | 14:16 |
| Later come the latest weekly US oil stocks figures from the Energy Information Administration, a day after an industry survey showed a bigger than expected fall. But the worries over the Middle East after the rift between Qatar and other Gulf states has continued to see oil prices slide, and a positive EIA report may have little impact. Craig Erlam, market analyst at Oanda, said: | Later come the latest weekly US oil stocks figures from the Energy Information Administration, a day after an industry survey showed a bigger than expected fall. But the worries over the Middle East after the rift between Qatar and other Gulf states has continued to see oil prices slide, and a positive EIA report may have little impact. Craig Erlam, market analyst at Oanda, said: |
| The only notable data to come today is EIA crude oil inventories which follow an API release on Tuesday that reported a drawdown of 4.62 million barrels. With oil already under pressure as traders appear to question the suitability of the output deal and the latest geopolitical issues in the region weigh, it will be interesting to see whether another large drawdown will offer any support. Having broken below $50 though, Brent continues to look vulnerable to further downside. | The only notable data to come today is EIA crude oil inventories which follow an API release on Tuesday that reported a drawdown of 4.62 million barrels. With oil already under pressure as traders appear to question the suitability of the output deal and the latest geopolitical issues in the region weigh, it will be interesting to see whether another large drawdown will offer any support. Having broken below $50 though, Brent continues to look vulnerable to further downside. |