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The FTSE 100 slipped on Wednesday in sluggish trading ahead of the Christmas holidays, although a hefty disposal of BP brought some life to the proceedings.
The FTSE 100 index fell 18.54 points, 0.2%, to 9,870.68. The FTSE 250 fell 35.05 points, 0.2%, to 22,314.50, while Objective The All-Share closed up 1.42 points, 0.2%, at 759.39.
BP closed 0.4% lower after announcing the sale of a 65% stake in its lubricants business Castrol to private equity firm Stonepeak Partners.
The London-based oil major said it would receive proceeds of about six billion dollars (£4.4 billion) from the sale, which gives Castrol an enterprise value of about $10.1 billion (£7.48 billion).
In February this year, BP announced a strategic review of Castrol as part of a plan to raise $20bn (£14.8bn) in disposals by the end of 2027.
“This transaction represents a significant milestone in BP’s commitment to accelerating its strategy including simplifying the portfolio, strengthening the balance sheet and focusing on its leading integrated businesses downstream,” the FTSE 100 listing said.
City Equity analyst Alistair Syme said BP’s comment that the deal proceeds would be directed “toward de-leverage (as opposed to shareholder returns)” “reinforces our view that the current share buyback program will be canceled before the arrival of the new one.” ceo In 2026.”
Woodside Energy boss Meg O’Neill is to join BP on April 1, 2026, following the exit of chief executive Murray Auchincloss last week.
But RBC Capital Markets questioned the justification for selling this “highly cash-generative, low volatility and low capital intensity asset, as ultimately this is detrimental to the long-term dividend sustainability and earnings quality of the business.”
In European shares on Wednesday, the CAC 40 closed 0.1% higher in Paris.
Stocks are expected to open slightly lower in New York on Wednesday after strong gains so far this week.
The Dow Jones Industrial Average is said to be 0.1% lower, while the S&P 500 and Nasdaq Composite are seen with modest losses as they begin Wednesday’s brief trading day.
The yield on US 10-year Treasuries was cut to 4.16% from 4.18%. The yield on the US 30-year Treasury was reported at 4.82%, down from 4.84%.
Weekly initial jobless claims data in the US provide the last major data point before the Christmas holiday.
The jobs market has become a major focus for the US Federal Reserve as it considers monetary policy options into 2026.
On Tuesday, the Conference Board’s measure of consumer confidence fell to 89.1 in December from a revised 92.9 in November, with job security a major concern.
At the close of the London Stock Exchange on Wednesday, the pound was priced at $1.3510, down from $1.3481 on Tuesday.
The euro stood at $1.1790, higher than $1.1777. Against the yen, the dollar was trading at 155.92 yen compared with 156.37 yen.
In London, weak pharmaceuticals shares held back the blue index with index heavyweights GSK and AstraZeneca both down 0.5%.
Elsewhere, retailers were focusing on performance in the key holiday trading period.
Data from BDO’s High Street sales tracker showed that UK retail sales rose marginally in the week before Christmas, driven by a sharp jump in online spending, although in-store sales and footfall remained under pressure.
Total like-for-like sales increased 1.0% for the week ending December 21, reversing two consecutive weeks of decline.
However, this increase compared to a 2.6% increase in the same week last year, highlighting weakness in consumer demand.
Meanwhile, the figures barclays It showed UK consumer spending rose 0.8% year-on-year in the four weeks ending December 12.
“Pubs, restaurants and fast food strengthened, while other tracked categories broadly weakened,” the Barclays report said.
On the FTSE 100, Next was down 0.3%, as was Marks & Spencer, while JD Sports Fashion rose 0.2%.
Barclays and NatWest have advanced to a second round of bidding for wealth management group Evelyn Partners. Sky News reported.
Sky said two high street banks were among the bidders that were informed last week that they had advanced to the second round of the Evelyn auction.
Sky said Royal Bank of Canada is also prepared to buy Evelyn, while several private equity firms have also submitted offers for the business, which could be valued at £2.5 billion.
Barclays shares closed 0.1% higher while NatWest lost 0.3%.
Crimson Tide dropped 17% after reporting a “significant customer”, which it did not name but described as a “major retailer”, has exercised a break clause in its contract.
The contract, which began a year ago, represents 12% of the Crimson Tide’s annual recurring revenue.
But Crimson Tide said the loss of the contract will help the company redeploy resources to higher-margin opportunities.
Outperforming, PipeHawk shares rose 44% after it agreed to sell its loss-making Utsi Electronics subsidiary to Hong Kong-based Lidi Global Supply for £1.0 million cash.
At the time of closing of the London Stock Exchange on Wednesday, the price of Brent oil was $ 62.58 per barrel, which was $ 62.09 late on Tuesday evening.
Gold traded at $4,492.58 an ounce on Tuesday, up from $4,462.05. Earlier, the yellow metal had created a new record of $ 4,525 per ounce.
Bullion has broken several records this year, partly due to loose US monetary policy, strong safe-haven demand and strong central bank buying.
The biggest risers on the FTSE 100 were Schroders, up 7.2 pence at 407.5p, Pershing Square Holdings, up 52.0p at 4,870.0p, Persimmon, up 13.50p at 1,334.25p, Melrose, up 5.2p at 585.4p and Enten, up 5.4p. 750.9p.
The biggest fallers on the FTSE 100 were Games Workshop, down 280.0p at 18,875.0p, Fresnillo, down 32.0p at 3,206.0p, Rolls-Royce, down 10.5p at 1,149.5p, Admiral, down 26.0p at 3,154.0p and Burberry, down 9.0p. 1,250.0p.
Next week’s global economic calendar includes minutes from the December Federal Open Market Committee meeting, manufacturing PMI prints and house price data in the UK and US.
There are no significant events scheduled in next week’s UK corporate calendar.
– Contributed by Alliance News