London’s FTSE 100 was dragged down today by BP and Shell sinking on oil prices taking a tumble.
The capital’s premier index fell 0.43 per cent to 7,489.19 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dropped 0.89 per cent to 18,930.57 points.
Oil prices tumbled around two per cent today, mainly driven by investors betting demand for the fossil fuel will shrink during the coming global economic slowdown.
FTSE 100 finished lower today
That bleak outlook and price action BP shed 2.24 per cent today and Shell lost 1.82 per cent.
Analysts also said the uncertainty over whether the UK government will expand a windfall tax on energy companies weighed on the sector.
“With oil prices hitting their lowest levels this year, Shell and BP shares have been the main laggards on the FTSE100, however the decline in energy prices also raises a wider question with respect to smaller energy producers in respect of the windfall tax,” Michael Hewson, chief market analyst at CMC Markets UK, said.
Card maker and FTSE 250 listed Moonpig slumped nine per cent today after it slashed revenue expectations on the cost of living crunch will engineer a spending slowdown.
But, analysts at broker Peel Hunt said the price movement was an overreaction.
Drug giant GSK soared to the top of the FTSE 100, adding 7.54 per cent after a US judge threw out claims that the Zantac drug caused cancer.
The pound strengthened 0.58 per cent against the US dollar.