FTSE 100 opens up nearly 1% by 50 to 5,691 points despite oil price plunge sparking investor fears over further crisis in hard-hit global energy sector
- FTSE 100 index of Britain’s biggest firms rises 50 points or 0.89% to 5,691 today
- Investors still fearful for UK economy’s future in lockdown until at least May 7
- Oil prices plunge again today after shocking fall on Monday to negative levels
- Learn more about how to help people impacted by COVID
London markets bounced back this morning with a 1 per cent rise despite fears over further turmoil in the energy sector after oil prices turned negative.
The FTSE 100 index of Britain’s biggest companies was up by 50 points or 0.89 per cent to 5,691 in early trading today as the coronavirus pandemic continues.
Investors are still fearful for the future of the UK economy as the country remains in lockdown and all non-essential travel is banned until at least May 7.
But today’s rise saw the FTSE claw back some of yesterday’s losses which saw it drop 172 points or 2.96 per cent to 5,641.
The FTSE has had a rollercoaster fortnight, and fell yesterday before rising again this morning
A currency trader today in the foreign exchange room of KEB Hana Bank in Seoul, South Korea
It comes after oil prices plunged again today following the shocking fall on Monday in US crude futures prices to negative levels.
Tatsufumi Okoshi, senior commodity analyst at Nomura Securities in Tokyo, said: ‘Until we see an end in the demand destruction by coronavirus, markets will remain nervous about the possibility of US prices hitting negative levels.
‘No US producers will be making money at current price levels. Some oil producing producers in the Middle East may scrape home minimum cash to get by. But at national levels, their fiscal conditions will be very severe.’
International benchmark Brent futures dropped 14.3 per cent to $16.57 per barrel. So far this week, it has lost 40 per cent.
On Wall Street yesterday, the S&P 500 lost 3.07 per cent, the Nasdaq Composite dropped 3.48 per cent and the Dow Jones fell 2.67 per cent.
Yesterday, the US Senate unanimously approved $484billion in fresh relief for the US economy and hospitals hammered by the pandemic.
Governors of about half a dozen US states pushed ahead with plans to partially reopen for business but some health officials warned doing so could trigger a new surge in coronavirus cases – fears shared by some investors.
The UK coronavirus death toll is now at 17,337, out of 129,044 cases reported across the country.