The FTSE 100 has risen by some 25 points this morning with a surge higher in BP’s share price lifting the index back above the 7500 level. The pound is also trading in positive territory making small gains against its G10 peers with the largest appreciation seen against the New Zealand dollar.
Earnings beat sends BP (LON:BP) to 3-year high
A better than expected trading update from BP has been warmly received by investors with the stock rising by as much as 3.5% after it announced its Q3 results. Shares in the oil producer broke above the 500 level during Monday’s session and they have opened sharply higher this morning after reporting higher than expected profits in the most recent quarter as well as announcing the restarting of its share buyback programme. Third-quarter underlying replacement cost profit, the preferred measure of the bottom line in the industry, came in at $1.87B vs consensus forecasts for $1.58B and the company is clearly benefitting from the resurgence seen in oil benchmarks since the early summer low. The firm is one of the most important blue-chips on the FTSE 100, currently being ranked as fourth according to market cap. Due to this weighting the latest rise has had a clear impact on the broader index and boosted the benchmark back above the 7500 level.
Catalan tensions ease
Spanish stocks have enjoyed another leg higher today, with the IBEX 35 hitting its highest level since August as the Catalan independence push has seemingly lost its way. After declaring independence on Friday, the former regional leaders have experienced a backlash with large protests against secession seen in Barcelona over the weekend and the imposition of direct rule from Madrid yesterday occurring as smoothly as could be hoped for by the central government. Carles Puigdemont, the ousted Catalan leader, will hold a press conference in Brussels around lunchtime today with speculation growing that he will look for political asylum in Belgium along with his former cabinet ministers. Whilst the situation remains delicate and sensitive to another flaring of tensions, for now, it appears that the latest independence push has been negated and there has been a fairly strong relief rally in Spanish stocks with the banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) leading the way higher.