Ftse close_ london shares fall as oil price retreats below $45 _ this is money

Sterling was cautious after the Bank of England released a survey showing business services growth and consumer spending slowed last month, partly due to June’s vote to leave the European Union.

The BoE had already released some of the findings of its August regional agents’ survey in last week’s quarterly Inflation Report, which showed companies expected the referendum would have a negative effect on capital spending, hiring and turnover over the coming year.

Among equities in London, falls by heavyweight oil majors weighed on the blue chips as crude prices retreated, with Royal Dutch Shell B shares down 1.1 per cent, or 23p at 1,972p, and BP losing 0.5 per cent, or 1.2p at 423.2p.

Medical products firm Smith & Nephew was also a big FTSE 100 faller, down 1.3 per cent or 17p at 1,261p after Barclays Capital downgraded its rating for the stock to equal-weight from overweight following disposal news earlier this week.

Analysts at Barclays said: ‘We believe its transition to higher growth platforms is underappreciated by the market … Electricity for refrigeration heating and air conditioning 9th edition answers However, with results continuing to disappoint and an upcoming management team transition we see a lower probability of upside optionality crystallizing within the next year.’

But engines maker Rolls-Royce was a top FTSE 100 gainer, adding 3.2 per cent or 24.5p at 788.0p as Morgan Stanley hiked its rating to equal-weight from underweight.

Insurer Prudential was also in demand, adding 1.5 per cent or 21p at 1,413p as investors mulled its interims results. Gas 76 station Although the company reported a fall in first half profits, it said that it was well placed to capitalise on positive structural trends and emphasised its ability to deliver both growth and cash.

And precious metals miner Randgold Resources gained 1.6 per cent, or 160p at 8.655p as gold prices rose more than 1 per cent on the back of the weaker dollar, and after broker Panmure Gordon raised its target price for the stock to 6,892p from 6,750p.

On the second line, FTSE 250-listed security and outsourcing firm G4S remained the main market’s top gainer, leaping 15.9 per cent, or 31.1p higher to 226.7p after it posted a 44 per cent increase in first half earnings and said it has made substantial progress with the ongoing transformation of the group.

And shares in Peppa Pig owner Entertainment One were also sharply higher, up another 7.8 per cent or 17p to 234.5p, adding to yesterday’s 10 per cent leap after the company said it had rejected a takeover offer that values it at 236p per share, or around £1billion.

The television and film producer did not name the bidder it had rebuffed, but ITV confirmed it was the interested party saying it believes the proposed combination has ‘strong strategic rationale’. World j gastrointest surg impact factor ITV shares were up 0.3p at 199.0p.

09.40: The Footsie stayed weak as the morning session progressed, stalling in its assault on 14 month highs as oil prices retreated as investors sought fresh direction.

By mid morning, the FTSE 100 index was off 4.2 points, or 0.1 per cent at 6,847.1, having closed 42.17 points higher yesterday buoyed by a recovery in oil prices and an advance by US stocks.

Shares in Peppa Pig owner Entertainment One were also sharply higher, up another 7.5 per cent or 16p to 233.5p, adding to yesterday’s 10 per cent leap after the TV and firm production company said it had rejected a takeover offer that values it at 236p per share, or around £1billion.

The television and film producer did not name the bidder it had rebuffed, but an earlier report in the Financial Times had named broadcaster ITV as the interested party. Youtube gas pedal ITV shares added 1p at 199.7p.

But bookmaker William Hill was in the red, down 3.4p at 325.6p after it rejected a £3.2billion joint takeover bid from casinos operator Rank Group and online gaming firm 888 Holdings late yesterday.

Back with results, FTSE 250 payment solutions provider Paysafe – known as Optimal Payments before it merged with competitor Skrill in August last year – gained 5.4 per cent, or 21.0p at 412.1p after posting a rise in first half profit as it upgraded its guidance for 2016 revenue and adjusted earnings.

Egypt-focused gold miner Centamin added 4 per cent, or 6.9p at 178.5p after significantly increasing its production guidance for 2016 and saying costs will be lower than previously expected, as the firm’s first half profits soared, leading it to double its interim dividend.

And support services group Interserve jumped 11 per cent, or 36.3p higher to 356.3p after it said it would exit its energy-from-waste business after taking a £70million exceptional charge.

Among the small caps, Midatech Pharma leapt 18 per cent, or 20.5p higher to 134.0p after issuing a positive trading update ahead of first half results due on September 2.

Mixed progress: Wall Street eked out modest gains overnight, while Asian shares hit one-year highs early on today before reversing in late trading as oil prices turned lower

Japan’s Nikkei 225 index closed 0.2 per cent lower, pulled down by a stronger yen, while Hong Kong’s Hang Seng index reversed earlier gains to trade down 0.1 per cent, after earlier hitting its highest level since November.

Trustnet Direct’s Cross, said: ‘The oil inventory data from the US is likely to draw some significant attention later in the session and with markets struggling to find much direction, any suggestions that reserves are building quickly could send a wave of panic across markets on both sides of the Atlantic.

‘That said, a weak oil price is precisely the sort of line that will deter the Federal Reserve from hiking interest rates – it could prove to be a mixed blessing.’

On currency markets, the dollar slid lower after weak US productivity data yesterday, helping sterling inch up from a one-month low against the greenback this morning, adding 0.3 per cent at $1.3032. Gsa 2016 calendar Against the euro, however, sterling was flat at €1.1693.

ITV, ENTERTAINMENT ONE – The owner of popular children’s TV character Peppa Pig has rebuffed a 236p-a-share takeover approach worth more than £1billion. Gas and supply The Canadian firm did not name its suitor, but ITV’s takeover plans were widely reported late yesterday, sending shares in its bid target surging by almost 10 per cent.