U.K. Stocks Set for Worst Drop in Two Weeks as Oil Shares Slideby
Declines in energy producers dragged the FTSE 100 Index lower as investors speculated on prospects of output curbs as major oil producers meet for talks this week.
BP Plc and Royal Dutch Shell Plc slid more than 1.4 percent, the biggest contributors to declines on the U.K. benchmark. InterContinental Hotels Group Plc slipped 4.3 percent after Morgan Stanley downgraded the shares to underweight, saying they look fully valued.
The FTSE 100 lost 1.2 percent at 9:06 a.m. in London, before OPEC members and Russia meet Wednesday in Algiers to discuss coordinated action to support oil prices. Oil tumbled on Friday after U.K. markets closed as Saudi Arabia was said to dismiss the prospects for an output deal.
Still, the British equity gauge last week climbed the most since July as commodity producers rallied amid optimism global central banks will remain supportive of growth. The FTSE 250 Index of midcaps was down 1.1 percent today.