Tuesday, 18th December: The FTSE 100 fell in the morning by 0.46%, following its peer from across the pond the Dow Jones Industrial Average which closed more than 2.0% lower on Monday. At the bottom of this was National Grid, down more than 6.0% after regulator Ofgem announced proposals to cut costs for consumers, including lowering returns energy networks can make to investors, which National Grid said they were “disappointed” to learn.
Record forecasts of US and Russian output, bloated inventories and a sharp sell-off in stock markets resulted in a 4.0% decline in oil prices on Tuesday, as US crude oil dropped to $47.84, a low previously reached in September 2017. By the year-end, oil production by the seven major US shale basins is expected to increase to more than 8 million bpd for the first time, and Russian oil output has hit a record 11.42 million bpd this month.
With roughly 80,000 emails being sent to businesses and business groups to advise them about no-deal planning, Sir Keir Starmer, shadow Brexit secretary, gave his opinion stating that Theresa May wouldn’t likely authorise a no-deal Brexit. The debate is scheduled to resume in the week starting 7th January 2019, which is to be followed up with the “meaningful” vote which is due to take place the week after.
Regardless of a bounce-back in US markets, at the end of the day the FTSE 100 closed 1.06% lower at 6702.