FTSE flat as oil prices negate strong earnings
FTSE 100 opened flat on Thursday as further weakness in crude prices hit oil heavyweights, but strong earnings boosted supermarket group Morrison .
The market is supported by some pleasing results, although the oil price is hitting the majors yet again, said one trader. The U.S. interest rate decision has not surprised the market, but it is now pricing in no change over there until the new year.
The U.S. Federal Reserve held its benchmark interest rate steady for a second straight meeting on Wednesday, saying that while inflation risks remain, they should abate as economic growth slows.
Traders said UK CBI monthly industrial trends for September will be closely eyed later on Thursday, as well as the ongoing debate as to whether the Bank of England will tighten monetary policy in November.
Oil steadied around $61 a barrel, climbing back from lows below $60 but news of rising U.S. stockpiles hit Royal Dutch Shell , BP and BG, all down around 1 percent. BG was also hit after Goldman Sachs reduced its price target on the stock.
Miners were stronger, however, responding to firmer base metal prices.
Supermarket group Morrison traded up 4 percent after posting a return to profit in its first half and saying targeted earnings improvements were on track as it recovers from its problematic takeover of Safeway.
At 07:14 GMT (8:14 a.m. British time) the FTSE 100 index was down 3.2 points, or 0.05 percent at 5,863.0 points.
Rolls Royce topped the list of FTSE fallers, shedding 1 percent after Airbus parent EADS confirmed fresh delays to its flagship A380 project for which the British company supplies engines.
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