- Both BP and Shell have published poor first-quarter results in recent days
Shares in Britain’s biggest oil and gas producers have led losses on the London Stock Exchange over the last month, as US trade tariffs have rocked global markets.
But the FTSE 100 has now clawed back a 0.1 per cent gain since 2 April – President Donald Trump’s ‘Liberation Day’ – as investors have been attracted to the ‘defensive’ qualities of London’s blue-chip index.
BP has been the FTSE 100 Index’s largest faller, with a 20.7 per cent drop, while Shell is the third-biggest faller, having declined by 14.2 per cent.
The pair, which have published first-quarter results in recent days, have seen shares come under pressure from lower oil prices as trade tensions have weighed on the outlook for the global economy.
A barrel of Brent Crude costs $61.8, an 11.8 per cent monthly fall, while West Texas Intermediate crude oil futures are 12.2 per cent lower at $59.8 per barrel.
Ithaca Energy shares have also suffered, dropping by 18 per cent, but Harbour Energy shares have done even worse than BP and Shell, plummeting by about 30 per cent.
Less energy: Shares in Britain’s largest listed oil and gas producers have tumbled over the past month amidst President Donald Trump’s shake-up of the global trade system
Only oilfield services provider John Wood Group has experienced a greater descent among FTSE 250 firms, diving by 40 per cent despite receiving an uplift after Dubai-based rival Sidara made a takeover offer.
Other stocks that have undergone massive declines are 4imprint Group and Watches of Switzerland, which dived in the immediate aftermath of Trump’s ‘Liberation Day’ tariff remarks.
Paul Moody, chairman of merchandise seller 4imprint, warned that extra import duties might impact sales after admitting that his company’s order intake was marginally weaker in January and February.
For Watches of Switzerland, the US Government’s plan to impose 31 per cent tariffs on Swiss products – though currently suspended – seriously threatens the luxury goods market’s health.
The FTSE 100’s top risers in April were led by B&M and supermarkets rebounding
The FTSE 100’s biggest fallers in April were led by energy giants BP and Shell
The blue-chip and mid-cap London indices did endure a torrid few days following Trump’s Rose Garden speech, with the FTSE 100 – Footsie – having its worst day of trading since the Covid-19 pandemic.
However, UK markets eventually recovered ground, and the Footsie is currently on a two-week-long winning streak thanks partly to the popularity of retail stocks.
Discount chain B&M has been the blue-chip index’s strongest performer over the past month, rising by 23.5 per cent.
Shares began soaring after the group said in mid-April that it expects annual profits to exceed the mid-range of guidance due to new store openings and strong trading in France.
B&M was followed in second place by Sainsbury’s, which has grown by 16.1 per cent. Other retailers among the ten strongest performers are JD Sports, Tesco, and B&Q owner Kingfisher.
Within the FTSE 250, Currys tops the list with a 27.5 per cent increase; the electricals upped its earnings outlook for the second time this year after attracting solid sales over the Black Friday and Christmas periods.
Yet less like the Footsie, the top ten fastest-growing mid-cap companies represent a wide diversity of sectors, from motor finance provider Close Brothers to pub chain JD Wetherspoon and low-cost airline Wizz Air.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, remarked: ‘Investors appear to have an appetite for the defensive nature of the index, as they continue to show a little more wariness for US assets which risk staying more volatile given the erratic policymaking at the White House.’
The FTSE 250’s biggest risers in April were led by electronics retailer Curry’s
The FTSE 250’s biggest fallers in April were led by Wood Group and Harbour Energy
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