BP Share News (BP.)

(Alliance News) - London's FTSE 100 reached its highest level since early March on Friday, helped by share price gains for oil majors following Thursday's OPEC+ meeting, which saw oil producing countries scale back their previously planned production hike.

The FTSE 100 index was up 63.08 points, or 1.0%, at 6,553.35 midday.

The blue-chip index last topped the 6,500 mark in the first week of March, before the Covid-19 pandemic sent equities sharply lower.

The mid-cap FTSE 250 index was up 141.26 points, or 0.7%, at 20,273.70. The AIM All-Share index was up 3.24 points, or 0.3%, at 1,069.45.

The Cboe UK 100 index was up 1.0% at 652.72. The Cboe 250 was up 0.9% at 17,600.33, and the Cboe Small Companies up 0.4% at 11,705.87.

In mainland Europe, the CAC 40 in Paris was up 0.4% on Friday, but the DAX 30 in Frankfurt was marginally lower.

"The FTSE 100 and oil prices both traded at nine-month highs this morning as focus increasingly turns to the boost vaccines can give the economy in 2021 – despite some concern about the roll-out of Pfizer's vaccine," AJ Bell Investment Director Russ Mould said.

"In the oil sector, relief that OPEC and its affiliate Russia have reached a deal on output seemed to outweigh any disappointment that production will increase from January – albeit modestly. The news follows days of wrangling where the market might have been fearing a repeat of the episode at the start of the coronavirus crisis when Saudi Arabia and its Russian counterparts seemingly decided a global pandemic was a good time to launch a price war in the crude market."

BP shares rose 3.9%, while Anglo-Dutch peer Royal Dutch Shell's 'A' shares climbed 2.9% and 'B' shares by 2.7%.

Brent oil fetched USD49.38 midday Friday, improved from USD48.50 a barrel at the London equities close on Thursday.

In New York, oil firms Chevron and Exxon were up 1.3% and 1.8% in pre-market trade.

In Milan, oil major Eni rose 2.5%. It has acquired a 20% stake in the Dogger Bank A and B projects from London-listed SSE and Norway's Equinor, entering the UK offshore wind market.

Perth, Scotland-based utility SSE is selling a 10% stake to Italian energy company Eni for GBP202.5 million. It said it plans to use the proceeds to help with delivery of its low carbon growth plans.

"Divesting this stake in Dogger Bank wind farm is in line with SSE's stated intention to partner to capitalise on its significant growth opportunities related to net zero," SSE said.

SSE shares were up 2.1% midday Friday.

Eni will buy the other 10% stake from Equinor, also for GBP202.5 million.

The pound was quoted at USD1.3459, down from USD1.3485 at the London equities close on Thursday.

A UK Cabinet minister has admitted that trade talks with the EU are in a "difficult phase" after government sources suggested hopes of a deal were diminishing. Business Secretary Alok Sharma said there were "a number of tricky issues" still outstanding, but stressed that the UK negotiating team was working hard to seal a deal.

His remarks came as reports suggested Michel Barnier, the EU's chief negotiator, would remain in London to continue talks over the weekend, having initially planned to travel back to Brussels on Friday.

"The pound has hit a one-year high against the dollar in anticipation of a Brexit deal yesterday, with the Irish Foreign Minister Simon Coveney stating that there was a 'good chance' a deal is struck within days," IG Senior Market Analyst Joshua Mahony said.

"However, we are in for a very volatile and unpredictable period ahead it seems, with the UK now stating that the EU have moved the goalposts once again with further demands. While the end-of-month deadline points towards another four weeks of talks, the amount of time needed to seek approval from all 27 nations will drastically limit the amount of time left for an agreement to be reached."

The euro stood USD1.2172 midday Friday, up from USD1.2153 late Thursday in London.

Stocks in New York were pointed higher on the final nonfarm payrolls Friday of 2020.

The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite were both headed up 0.4% and the S&P 500 up 0.3%, based on futures trading.

Against the Japanese yen, the dollar was trading at JPY104.00, improved from JPY103.73 late Thursday in London.

The key US jobs reported data is released at 1330 GMT.

According to consensus cited by FXStreet, 469,000 jobs are expected to have been created in November, slowed from 638,000 in October.

The ADP jobs report on Wednesday, a precursor, showed the US private sector employment increased by less than expected in November amid a resurgence of coronavirus infections.

Private sector employment increased by 307,000 jobs in November, below October's revised reading of 404,000 and undershooting expectations of 410,000, according to FXStreet.

In economic data already out, the UK construction sector enjoyed its sixth month of growth in a row in November, boosted by the quickest rise in new orders since 2014.

The headline seasonally adjusted IHS Markit/CIPS construction purchasing managers' index rose to 54.7 points in November from 53.1 in October, the sixth month on the trot that the index has come in above the 50.0 no-change mark.

The three sub-categories - housing, civil engineering and commercial work - also registered growth in November.

Back on the London Stock Exchange, it was a mixed day for housebuilders in the FTSE. Persimmon rose 2.9% and sat towards the top of the blue-chip index in the wake of the construction PMI release.

Peer Berkeley posted a first-half earnings fall and its shares dropped 0.7%, among the worst FTSE 100 performers.

Pretax profit in the six months ended October 31 fell 17% to GBP230.8 million on revenue which slipped 3.8% to GBP895.9 million. Berkeley sold 1,104 homes during the period, down 21% from 1,389 a year earlier, though the average selling price rose 24% to GBP799,000.

"Over many years Berkeley has been the star performer in the housebuilding sector, but it has lost some of its shine after sounding a cautious note alongside its first-half results," AJ Bell's Mould added.

"The culprits behind this guarded outlook are wearily familiar – Brexit, which still hangs in the balance, and Covid-19."

Elsewhere in London, Cineworld shares fell 11%, the worst-performing mid-cap stock, putting an end to a rally which has seen the movie house chain's stock more than double over the past month.

AT&T subsidiary Warner Bros will release its entire 2021 slate of movies on HBO Max streaming and in theatres simultaneously, including "The Matrix 4" and Denis Villeneuve's "Dune" remake, the studio announced in a landmark response to the pandemic Thursday.

The "hybrid model" will see films available on HBO Max streaming in the US for one month from the date of their theatrical release.

On the AIM market in London, cinema company Everyman was down 8.1%.

Gold was quoted at USD1,840.72 an ounce, up from USD1,826.52 at the London equities close on Thursday.

By Eric Cunha; ericcunha@alliancenews.com;

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