Focus on Fed as FTSE slips lower

A rally in oil prices could not stop the blue chip index falling 1% to 6,880.

Oil prices surged due to co-ordinated action between global oil producers to solve a supply glut, but investors started to look ahead to a likely US interest rate hike this week.

Miners contributed to the weak performance of the FTSE 100 with Polymetal (POLY) declining 4.8%.

Glencore (GLEN) and Randgold Resources (RRS) slid 1.3% and 1.5% lower, respectively.

West Texas Intermediate and Brent crude oil both rose by 3% to $53.15 and $56 per barrel, respectively.

Gold was flat at $1,159 per ounce and copper was 0.5% lower at $5,798 per tonne.

FTSE 100 RISERS AND FALLERS

Separately Glencore (GLEN) agreed terms for a new joint partnership with Qatar Investment Authority to buy 19.5% of Russian resources giant Rosneft for €10.2bn. Glencore reported it will commit €300m and QIA will commit $2.5bn in equity, while the remaining funds will come from bank financing.

SMALL CAP RISERS AND FALLERS

Radio frequency tech provider E2V Technologies (E2V) soared 47.4% after receiving a 275p per share takeover offer from Teledyne. E2V shares had been weak after a full year profit warning last month.

Tethys Petroleum (TPL) gained 14.4% following the announcement that Intergas Central Asia will continue accepting gas produced by its subsidiary Tethys Aral Gas under its existing contract. In October, the firm said it intended to cancel the contract.

A profit warning sent engineer Molins (MLIN) 2.8% lower to 52p. It said trading in the last three months of the year was lower than expected, but insisted that the order book is healthy.

LGO Energy (LGO) said it would take advantage of lower rig rates and rig availability to advance its drilling programme at the Goudron field in Trinidad as soon as possible.

Hydrodec (HYR) enjoyed record sales of re-refined oil and daily output levels in October, which triggered a 7.5% rise in its share price to 2.15p.

Critical asset maintenance services group Marlowe (MRL) pleased investors after reporting £0.6m operating profit for the six months to 30 September. It also raised £10m to accelerate growth.

Software developer Petards (PEG) won a contract to supply Siemens Mobility division with its eyeTrain systems.

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