The FTSE 100 opened higher in London on Monday, as oil companies surged amid higher oil prices after OPEC+ cartel slashed their output.
The FTSE 100 index opened up 43.30 points, 0.6%, at 7,675.04. The FTSE 250 was up 8.44 points at 18,936.74, and the AIM All-Share was up 6.64 points, 0.8%, at 815.91.
The Cboe UK 100 was up 0.5% at 767.71, the Cboe UK 250 was down 0.2% at 16,518.62, and the Cboe Small Companies ended up 0.1% at 13,249.91.
Oil prices jumped after Saudi Arabia led a coordinated production cut by major oil powers on Sunday, despite US pressure to pump more crude, saying they were aiming at market stability.
Cuts by the Saudis, Iraq, UAE, Kuwait, Algeria and Oman from May to the end of the year will total more than one million barrels per day - the biggest reduction since the OPEC+ cartel slashed two million barrels per day in October. Russia, a member of OPEC+, said it also was extending its cuts of 500,000 barrels per day to the end of this year, calling it ‘a responsible and preventive action’.
A Saudi energy ministry official ‘emphasised that this is a precautionary measure aimed at supporting the stability of the oil market’, the official Saudi Press Agency said.
On the back of the news, FTSE 100 oil companies saw their stocks jump. BP rose by 4.7%, whilst Shell jumped 4.4%. On the FTSE 250, Harbour Energy was up 7.3% and Tullow Oil 5.8%.
Brent oil was quoted at $84.15 a barrel at early in London on Monday, up from $79.14 late Friday.
In European equities on Monday, the CAC 40 in Paris was up 0.3%, while the DAX 40 in Frankfurt was up 0.1%.
The pound was quoted at $1.2316 at early on Monday in London, lower compared to $1.2370 at the equities close on Friday. The euro stood at $1.0831, lower against $1.0863. Against the yen, the dollar was trading at JP¥133.55, higher compared to JP¥132.90.
On the LSE, Ryanair and Wizz Air reported their March passenger numbers, showing big increases from a year before.
Ryanair was up 1.4% early Monday, whilst Wizz Air lost 2.6%.
FTSE 250 Wizz Air said it carried 4.3 million passengers in March, a 72% year-on-year increase. The budget airline’s load factor improve to 92.2% from 86.2% a year before, whilst total capacity jumped by 61% to 4.6 million seats from 2.9 million seats.
On a rolling 12-month basis, capacity was up 68% to 58.2 million seats from 34.6 million seats. Passenger numbers surged 89% to 51.1 million from 27.1 million, and Wizz Air’s load factor improved to 87.8% from 78.2%.
Budget airline Ryanair said that the number of passengers in March rose by 12% to 12.6 million from 11.2 million a year earlier. Ryanair’s load factor improved to 93% from 87%.
On a rolling 12 month basis, the number of passengers climbed 74% to 168.6 million from 97.0 million. Load factor increased to 93% from 82%.
The airline operated over 71,350 flights in March 2023, it said, while noting that in 2022 air traffic was hurt by the Ukraine invasion.
Elsewhere, WANdisco said that Co-founder & Chief Executive Officer David Richards and Chief Financial Officer Erik Miller have decided to step down, following an investigation.
In March, WANdisco suspended trading in its shares after uncovering signs of possible ‘sophisticated’ fraudulent activity, just days after it announced it was exploring a potential US listing.
On Monday, the company said Non-Executive Chair Ken Lever will take up the role of executive chair pending the conclusion of a formal process to appoint a new CEO, which will begin shortly. WANdisco also named Ijoma Maluza as its new interim CFO.
‘It is in the best interests of all stakeholders if this objective is pursued under new leadership,’ WANdisco said.
The company noted that the board changes are not connected to the findings to date of the independent investigation. So far, WANdisco has confirmed that purchase orders giving rise to recognised revenue of $14.9 million for financial year 2022 are false and that sales bookings of $115.5 million recorded in financial 2022 are also false.
‘The results of the independent investigation to date continue to support the initial view that the irregularities are as a result of the actions of one senior sales employee. FRP Advisory is continuing to pursue the investigation to reach a conclusion,’ WANdisco added.
In Asia on Monday, the Nikkei 225 index was up 0.5%. In China, the Shanghai Composite was up 0.7%, while the Hang Seng index in Hong Kong was up 0.2%. The S&P/ASX 200 in Sydney closed up 0.6%
Growth in the Chinese manufacturing sector stalled in March, according to survey data on Monday.
The Caixin manufacturing PMI fell to a neutral reading of 50.0 points, from the eight-month high of 51.6 in February. The 50-point mark separates growth from contraction and shows manufacturing activity was stable from the previous month.
Meanwhile, in Japan, the deterioration of the country’s manufacturing sector eased slightly in March. The au Jibun Bank manufacturing PMI increased to 49.2 points in March from 47.7 in February.
Monday’s economic calendar has a slew of manufacturing purchasing managers’ index readings, including the UK at 0930 BST and the US and 1445 BST.
In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average ending up 1.3%, the S&P 500 up 1.4% and the Nasdaq Composite up 1.7%.
Gold was quoted at $1,958.91 an ounce against $1,979.05.
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