The FTSE 100 closed down 8.47 points at 7,526.97 as the pound traded flat against the dollar at $1.33 and oil nudged $58 a barrel.

MARKETS CLOSE: Footsie slips while oil price nudges $58

Japan's Nikkei rose for a ninth straight day and climbed to its highest level since 1996

Japan’s Nikkei rose for a ninth straight day and climbed to its highest level since 1996

Oil rising, can it hit $60 per barrel?

Oil prices pushed higher as the conflict between Iraq and Kurdistan entered a new phase with the advance of Iraqi forces on Kirkuk.

However any disruption may prove temporary with neither side wanting to shut-in oil production for long.

The prospect of fresh US sanctions on Iran may offer longer-term support to prices, although again any sanction regime will be limited in scope given that the US position is at odds with the rest of the international community.

Brent rose above $58 and while the late September highs above $59 are within sight it may struggle to find much momentum past $60 as this remains a fairly localised conflict that is unlikely to spark wider disruption to supplies from the Middle East.

Nevertheless with around 550-600k barrels a day pumped from the region, worth about one-tenth of Iraq’s production, the escalating conflict will offer support for prices.

Footasylum plans float on the London Stock Exchange

Premium sports retailer Footasylum has announced its intention to float on the London Stock Exchange in a move that could value the firm at £150million.

The company is expected to begin trading on London’s junior AIM market in November and will plough the money raised into expansion.

The 60-store firm was established in 2005 by the founders of JD Sports, David Makin and John Wardle, and will open up to 10 outlets a year with a target of ‘at least’ 150.

Footasylum’s products are aimed at 16 to 24-year-old ‘fashion conscious customers’, with the company dividing its shoppers into six core ‘tribes’.

Last year the firm raked in £147million in revenue and booked an operating profit of £11.2million.

Menswear accounted for 71 per cent in the period compared with 8 per cent for womenswear and 18.5 per cent for childrenswear.

Some reasons for stock pickers to be cautious

Medical technology company ConvaTec cut its full-year organic revenue growth forecast on after its third quarter was hurt by supply issues.

ConvaTec lowered the full-year organic revenue growth target to a range of 1 per cent to 2 per cent.

Meanwhile construction firm Interserv is in talks with its banks to provide clarity on its current trading and recent profit warning.

The statement follows a Sky News report that Interserve’s lenders, including HSBC and Royal Bank of Scotland, have hired EY as an adviser last week.

The company said that work is underway to ‘provide greater clarity’ on Interserve’s current trading and waste-from-energy provision.

Positive start to the week fuelled by Asia and oil prices

Asian shares advanced to a decade high, while oil jumped to hover near a six month top as escalating tensions between the Iraqi government and Kurdish forces threatened supply.

Japan’s Nikkei rallied for a sixth day to a level not seen since November 1996. Australian shares extended their winning streak to a fourth straight session to rise 0.6 per cent, while the Shanghai Composite Index edged 0.1 per cent higher.

FTSE 100 up 6 points at 7,541.2


Posted on; DailyMail>>

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