5 July 2005, 12:01  London shares open a touch lower as BP hit by profit taking

Leading shares opened the session lower, hit by profit taking in heavyweight blue chip BP on the back of a trading update, and amid caution as oil spiked higher yet again overnight, dealers said. At 8.11 am, the FTSE 100 was down at 1.9 points at 5,182.4, having closed yesterday 21.4 points firmer at 5,182.4 - its highest level since May 2002. With Wall Street's closure yesterday for Independence Day, investors will look to Asia for some guidance. In Tokyo, the Nikkei 225 index finished its session 34.85 points lower at 11,616.70. Back in London, investors will sift through conflicting economic data in a bid to second guess the Bank of England's interest rate decision on Thursday. UK June services PMI, released yesterday afternoon - a day early - performed better than expected, prompting some watchers to pour cold water on the likelihood of an immediate rate cut. Also news that oil edged closer to 60 usd a barrel again in overnight trade on supply concerns will weigh. And in equities, oil stocks took centre stage after BP updated the market on second quarter trading. BP PLC gave an upbeat assessment of trading for the second quarter, largely reflecting buoyant oil and gas prices. The group said overall production remains on course with its guidance of 4.1-4.2 mln barrels of oil equivalent per day for the year. It also confirmed it continued to benefit from soaring oil prices, with Brent crude averaging 51.63 usd per barrel in the second quarter, up from 47.62 usd in the first quarter and 35.32 usd a year ago. But after hefty gains yesterday, investors took the opportunity to take profits, sending its shares down 3 at 614

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