Mixed results from oil majors - Latest Market Analysis
In a scenario than has become rather atypical lately, corporate earnings, as opposed to macroeconomic factors, were the main drivers of financial markets. This came despite the release of the UK’s second quarter GDP figures, which at first estimates suggest the economy grew at a mere 0.2%. The Office for National Statistics were keen to point out that growth of 0.7% may have been achievable without a number of “special factors” including the Japanese earthquake and the Royal Wedding. The data was widely anticipated however, and Sterling’s initial gain against the dollar and the euro indicated that many investors may have been expecting a more gloomy reading. Gilts fell in response as the positive figure decreased the likelihood of further Quantitative Easing in the shorter term.
BG Group sat comfortably atop the FTSE leader board after the oil and gas producer enjoyed a doubling of net profits that beat analysts’ expectations. Positive comments regarding its reserves in Brazil were also a major factor in helping the shares to gain 4.3% by market close. The higher oil and gas prices that contributed to the group’s success were however not enough to lift BP’s earnings which, at 11% below consensus, failed to satisfy investors seeking a turnaround from the Gulf of Mexico disaster. The shares ended the day down 2.6%, with the FTSE closing roughly flat at 5930 (+0.1%).
This was posted in Bdaily's Members' News section by John Dance .
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