FTSE drifts lower, as oil falls on Syrian strike
|The FTSE is in the red, with sterling pushing higher once more. The strike on Syrian chemical locations has helped draw a line under recent tensions, dragging crude lower. Meanwhile, WPP shares suffer in the wake of Martin Sorrell’s departure.
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Early losses on FTSE amid strengthening pound
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Syrian strike draws line under recent tension, dragging crude lower
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WPP shares fall, yet potential breakup could bring short term bounty
We look set for yet another day of moderate losses for the FTSE 100 if early trade is anything to go by, with an elevated sterling continuing to restrict upside for the main UK index. The strike on Syrian chemical locations over the weekend marks the end of the recent standoff which saw oil prices hit a three-year high in anticipation of a greater Western presence in the Syrian conflict. Market realisation that this attack largely draws the line under the issue has brought about a sharp decline in oil prices in early trade, hitting BP shares in particular.
The departure of Martin Sorrell over the weekend has dragged WPP into the red, with shareholders understandably cautious about where the company goes now after Sorrell’s 33 years in charge. One of his strongpoints is the ability to pull together all parts of the business to work together, and with that in mind there is a strong chance we may see the company broken up. There is reason to believe that the current share price may not fully capture all components of the firm, and investors are certainly interested in the possibility that value could be captured by splitting the firm into separate pieces.
Ahead of the open we expect the Dow Jones to open 107 points higher, at 24,467.
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