LONDON: London’s FTSE 100 closed nearly flat on Wednesday, weighed down by a fall in energy stocks on lower oil prices, with investors looking for clues on US stimulus measures after President Donald Trump called a halt to talks with Congress on a comprehensive bill.
The blue-chip FTSE 100 index closed down 0.06%, with energy and insurance stocks leading declines.
The mid-cap index ended flat.
The energy index was one of the biggest drags on the FTSE 100 as oil prices slid nearly 2.5% after US President Donald Trump on Tuesday called off talks with lawmakers on pandemic aid, and after a larger-than-forecast rise in US crude stocks.
“There are hopes that the stimulus plans could be revived in the period between the election and January’s inauguration which are probably helping investors keep the news in perspective for now,” said Russ Mould, investment director at AJ Bell.
Wall Street’s main indexes jumped on Wednesday as investors grew hopeful of at least a partial deal on more fiscal stimulus, but top White House officials on Wednesday downplayed the prospect of either a comprehensive deal or standalone measures.
“Investors are on an edge with continuing uncertainty on Brexit, and have taken the view that they can’t place long bets in this environment,” said TS Lombard strategist Andrea Cicione.—Reuters
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