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Oil prices fall on Trump's withdrawal from Paris climate deal

02 June 2017 16:52

Brent crude oil dropped by 1.7% to $49.74 per barrel as investors speculated that US President Donald Trump's decision to withdraw from the Paris climate deal could increase crude drilling in the country.

Oil giants BP (BP.) fell 1.5% to 462.7p and Shell (RDSB) slipped 1% to £21.35, which threatened to drag the FTSE 100 into the red.

The blue-chip index was flat at 7,547.

Gold glittered at $1,278 per ounce and copper was down 0.7% to $5,665 per tonne.

ECONOMIC NEWS

The UK economy continued to show promising growth as the construction sector rebounded to a 17-month high in May, helped by the fastest upturn in residential work since 2015.

Markit's Purchasing Managers' Index was 56 in May - a sharp hike from 53.1 in April.

OVERSEAS MARKETS

On Friday, the S&P 500 was flat at 2,432 as the latest jobs figures from the Labor Department underwhelmed.

In May, the US created 138,00 jobs - well below the anticipated 180,000 forecast by analysts.

FTSE 100 RISERS AND FALLERS

In corporate news, the UK wealth management business of Old Mutual (OML), Old Mutual Wealth, completed the acquisition of Caerus Capital.

Shares in the group were up 3.3% to 197p.

FTSE 250 RISERS AND FALLERS

Challenger bank Metro (MTRO) boosted its mortgage book with the £597m acquisition of Cerberus's UK mortgages at a discount to its face value in a bid to meet its three-year profit target. Investors approved of the move as the bank advanced 1.4%, but this eased back to £37.25.

Inmarsat (ISAT) remained grounded despite awarding a contract to construct an additional Global Xpress broadband network communications satellite to Thales Alenia Space. Inmarsat was broadly unmoved at 843p.

Acacia Mining (ACA) benefitted from a small relief rally after the miner announced that it believes it is closer to resolving a mis-reporting issue.

The Tanzanian government recently banned the export of gold/copper concentrates following its accusation that Acacia under-reported the amount it was transporting. Shares in Acacia jumped 2% to 289.4p as investors were hopeful of an upcoming resolution.

SMALL CAP RISERS AND FALLERS

Motif Bio (MTFB) raised approximately £19.4m to fund the further development of iclaprim, its novel antibiotic candidate, triggering a 14.5% slump in the stock to 32.5p.

In the mining sector, Ormonde Mining (ORM) pleased the market with an update of construction activities for the Barruecopardo project in Salamanca, Spain. The stock catapulted 32% to 1.7p.

The acquisition of Eunisure by AFP Financial (AFHP) for up to £4.5m helped the stock to gain 10.2% to 215p.

Story provided by StockMarketWire.com

Related Company: BP.

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