After a terrible week for the UK’s leading basket of stocks, the FTSE 100 managed to recover some ground this morning taking heart from a positive close to stock markets in the US.
It has been a rough couple of days for UK markets as investors fret over where the world is heading economically.
A major manufacturing slowdown in the US, coupled with similar situations across developed European countries, has got markets worried over the prospects for global growth.
Despite hitting an eight-month low at one point yesterday, the FTSE 100 has managed to stay above the 7,000 mark, and moved 0.4% or 26 points higher this morning to 7,103.79.
INSURERS HIT BY FCA REPORT
Insurers were in the spotlight after City regulator the Financial Conduct Authority (FCA) released a damning report which found that millions of loyal customers are overpaying for car and home insurance.
Among the companies impacted by the report were Admiral (ADM), Direct Line (DLG) and Hastings (HSTG), which are almost entirely dependent on the UK home and car insurance markets.
While Admiral’s share price moved 0.4% higher to £20.44, Direct Line fell 2.4% to 276p and Hastings fell 1.3% to 186p.
Aviva (AV.) and RSA (RSA) are also affected, albeit to a lesser extent due to their more global exposure. Shares in Aviva fell 0.8% to 387p while RSA dipped 0.2% to 501p.
BP'S 40-YEAR VETERAN STEPS DOWN
The other big news of the morning came from oil giant BP (BP.), which edged 0.6% higher to 488p after announcing that chief executive Bob Dudley would step down from his role next year.
Long-serving Dudley, who has spent 40 years at BP including the last nine as the top boss, will be replaced by Bernard Looney, another company veteran who initially joined as an engineer in 1991.
Dudley is the latest in a long line of chief executives to announce that they are quitting this year. So far 10 chief executives have already gone with another eight announcing that they would leave.
Pharma giant AstraZeneca (AZN) rose 0.7% to £69.99 as it revealed it has gained US FDA approval for its asthma auto-injector, Fasenra.
Aerospace engineer Meggitt (MGGT) nudged 0.7% higher to 615p as it won a $48m contract to supply aerial weapons scoring systems to the US army.
Real estate investment trust Workspace Group (WKP) moved up 0.2% to 939p after selling a property in Farringdon for £14.75m, earning a 47.5% premium on the sale in the process.
Workspace said the money gained will be used to fund its acquisitions and project pipeline.
