MARKET WRAP: FTSE rallies, GBP drops ahead of BoE, Oil higher

imageEconomy21 hours ago (Nov 01, 2021 16:30)

© Reuters.

Key Points

  • FTSE 100 closing price of 7288.6, +0.7%
  • Barclays (LON:BARC) CEO quits over ties to Epstien
  • Ryanair returns to profit
  • GBP lower as Brexit rears its head, BoE in focus
  • Oil higher ahead of OPEC
  • Major cryptocurrencies edge higher

By Samuel Indyk – The FTSE 100 began the new month on the front foot despite a decline in Barclays shares following the resignation of CEO Jes Staley.

Shares in the UK banking behemoth declined following Staley’s resignation which comes after an investigation by UK regulators into his ties to the late Jeffrey Epstein. Barclays announced that C.S. Venkatakrishnan will take over from Staley.

“Sudden change at the top is always unsettling, and the departure of Mr Staley who propelled its successful investment banking expansion strategy may be particularly unnerving for investors,” wrote Hargreaves Lansdown (LON:HRGV) Senior Investment and Markets Analyst Susannah Streeter. “However, continuity will be provided to some extent by C.S. Venkatakrishnan, head of global markets, who will take over as chief executive.”

Ryanair (LON:RYA) shares were trading higher after the airline recorded a quarterly profit for the first time since the pandemic begun. The company also said it is considering delisting shares from the London Stock Exchange due to a drop in trading volumes post-Brexit given EU rules requiring EU airlines to be majority-owned by nationals from within the EU, Switzerland, Norway, Iceland or Liechtenstein.

“In my personal view, I think we will probably delist sometime in the next six months,” said Ryanair CEO Michael O’Leary.

GBP/USD was lower although traded in a tight range ahead of key risk events later this week, including central bank decisions from the Federal Reserve and Bank of England. The ongoing spat between the UK and France over post-Brexit fishing rights is also not helping the pound. UK Foreign Secretary Liz Truss gave France a 48-hour ultimatum to remove the threat of sanctions, alleging that France has behaved unfairly.

WTI and Brent crude futures were both trading higher ahead of the OPEC+ meeting on Thursday. The cartel is expected to press on with its plan to increase output by just 400,000bpd in December, despite oil recently hitting multi-year highs. Data from India – the third-largest energy consumer – showed that diesel consumption rose above pre-COVID levels for the first time in a year as industrial activity picked up ahead of festival season.

Most major cryptocurrencies edged higher on Monday with Bitcoin trading in a relatively tight range near $62,000. One cryptocurrency that was lower was the Squid Game cryptocurrency, named after the Netflix (NASDAQ:NFLX) series but not affiliated to the show. The cryptocurrency dropped to almost $0 and social media accounts related to the coin have been restricted by Twitter (NYSE:TWTR) or taken down. The “project” is most likely a scam, with Gizmodo reporting that the alleged scammers have likely made off with over $2 million.


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MARKET WRAP: FTSE rallies, GBP drops ahead of BoE, Oil higher

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