Oil price rises push FTSE down

By MoneyhighStreet Staff. Published on August 18, 2008 This post currently has no comments.

French Connection
Supply issues forced oil prices up today (August 18th) and this hit the FTSE, driving the blue chip index down.

Concerns about Tropical Storm Fay and a key eastern European supply route ensured oil prices rallied, after several days of falls.

The news hit the FTSE 100, which closed down 4.60 points at 5,450.20, amid fears that the August US National Association of Homebuilders survey will show continued weakness in the economy.

In particular, higher oil prices hit retailers, with French Connection seeing its share value slump 11 per cent to 62.50.

News that house prices in the UK continued to slide also impacted the market, driving down building companies.

Taylor Wimpey shed nearly 7.5 per cent to 46.75, while Redrow lost 6.5 per cent to close at 157.25.

Elsewhere, news that struggling retail chain Woolworths had rejected a takeover bid for its network of 815 stores pushed shares in the company up. It closed up over 11 per cent at 7.39.