FTSE 100 index posts 5% loss for 2015 - business live

Graeme Wearden

from on 2015-12-31 16:44 (#Z7K8)

Rolling coverage of the final trading day of the year, as Britain's blue-chip index ends 2015 in the red

4.44pm GMT

We'll have a story online shortly covering today's stock market news.

But that's all from me this year. Thanks for reading and commenting - it's been an eventful 2015, particularly during the Greek debt crisis:

4.43pm GMT

Betting firm Ladbrokes has issued its odds for 2016 - it expects UK interest rates to stay at 0.5%, house prices to keep rising, and the eurozone to stay intact.

Here's the highlights:

4.09pm GMT

Any FTSE 100 investors feeling grumpy about this year's performance should spare a thought for their counterparts in Athens.

The Greek stock market lost an eye-watering 25% of its value this year, hit by the long drawn-out bailout negotiations. Bank shares were pretty much wiped out:

#Greece stock market -24.4% in 2015 (from -3.5% in the 1st half), banks -94% (from -31.5% until end-Jun). #economy #banking #markets #stocks

3.41pm GMT

Jeremy Cook, chief economist at foreign exchange firm World First, says China's economy will drive world markets next year.

He also warns that Britain's upcoming vote on whether to stay in the European Union could hurt sterling:

"As we move into 2016 it will be the ability of the Chinese authorities to stabilise economic growth that will shape the global outlook. China at the moment is feeling the blowback of years of investment driven growth with industries chock full of unproductive factories, a housing sector with a significant stock overhang and ensuing high debt levels in local government and corporate balance sheets."

"Risks of another global downturn will continue to favour the US dollar as the true currency of safe haven flows. There are reasons to be optimistic in 2016 around global growth but risks from China, Eurozone and Latin America balance will still exist."

2.37pm GMT

As predicted, shares on Wall Street are dropping in early trading.

The S&P 500 index has lost 0.3%, putting it back in the red for the year.

Dow falls 100 in open; S&P 500 back in red for 2015 https://t.co/ex3XZFFSAY pic.twitter.com/M2ma35hScE

2.00pm GMT

Despite finishing the year in the red, the FTSE 100 did hit some new highs in 2015.

The Press Association has the details:

February 24 saw the London market break a record that had stood for more than 15 years as the FTSE 100 hit a new all-time high, boosted by investor optimism about the financial crisis in Greece.

Britain's benchmark index of leading shares closed at 6958.89, which meant the FTSE 100 finally surpassed its previous intraday peak of 6950.6 set on December 30 1999, just before the dotcom bubble burst.

1.50pm GMT

Joshua Mahoney of IG suggests that the London stock market will be driven by speculation over UK interest rate rises next year:

2015 has seen the FTSE moving in an inverse manner with inflation, with falling inflation in early 2015 treated with glee by investors, yet as disinflation fears were allayed in H2, we have seen the FTSE pull back in anticipation of a more hawkish BoE stance.

Given that disinflation fears have been driven largely by the fall in oil prices, there is reason to believe that 2016 will also see sentiment largely driven by the movement of oil prices, their impact upon inflation expectations and the subsequent monetary policy stance from the BoE.

1.39pm GMT

Analysts at RBS point out that the FTSE has now recorded two annual declines in a row:

FTSE 100 ends 2015 a not so merry 4.9% lower, following a 2.7% fall over 2014. pic.twitter.com/McpazxkNsd

1.39pm GMT

London't main stock index was one of the few major benchmarks to lose ground this year (although America's Dow Jones industrial average could follow it).

Here's how things finished.

1.22pm GMT

The US stock market is expected to follow London's lead, when it opens in an hour's time:

U.S. futures indicate lower open for the last trading session of 2015. https://t.co/TYyASCwzoa pic.twitter.com/HmsxcMmpA7

12.51pm GMT

London's stock market has closed for 2015, after a less than stellar performance.

The FTSE 100 lost 31 points today, or 0.5%, to finish at 6,242. That means the blue-chip index has lost almost 5% of its value since the start of this year.

"We don't see a vast amount of movement in the FTSE 100 this year."

12.34pm GMT

The oil price is dipping into the red, knocking almost 1% off the price of a barrel of US crude.

WTI CRUDE EXTENDS LOSS, DROPPING 27 CENTS TO $36.33/BBL: BBG

12.16pm GMT

We've pulled together a map showing where today's oil rig evacuations took place:

11.54am GMT

Reuters data whizz Vincent Flasseur has pulled together some handy charts, showing the scale of the rout in commodity prices this year:

11.50am GMT

News from the North Sea: The barge that was threatening to hit BP's oil platform in Valhall has missed the installation.

It's not clear how soon BP staff will be returned to the site after being evacuated this morning, or whether other platforms are still at risk, though.

11.27am GMT

Back in London, the stock market is shuffling its way towards the new year.

After a year that began so promisingly the markets are wrapping up 2015 in the limpest way possible, a collective sigh instead of any attempt at New Year's Eve fireworks.

11.02am GMT

The stormy weather in the North Sea has claimed one life already this week.

A rig operated by energy company Statoil was hit by a "heavy wave" yesterday, killing one worker and injuring two more.

10.24am GMT

Oil giant BP is scrambling to evacuate staff from a platform in the North Sea, because a barge is drifting in the area.

"The barge has changed direction and BP has decided to shut production [at Valhall] and there will be a total de-manning of the platform. There are 71 people left on the platform and they are being evacuated as we speak."

10.01am GMT

Tomorrow could be another red-letter day for Puerto Rico, and those investors who have loaned money to the US territory.

Puerto Rico is expected to default on $37m of debt obligations, as its ongoing financial crisis worsens. It has already defaulted once, in August, sparking suggestions that Puerto Rico is America's Greece.

9.48am GMT

The slump in the rouble will hurt Russian families by pushing up the cost of imported goods, and make an overseas trip even pricier.

Some analysts say the rouble is still overvalued, and the current oil price should theoretically push the rouble down further. This is necessary to balance the budget: the fewer dollars Russia receives for the oil it sells, the higher the exchange rate needs to be for the budget to receive the requisite amount of roubles. For the budget to balance at 65 roubles, not far off the current rate, the price of oil should be $70, a recent Bank of America Merrill Lynch report found.

For ordinary Russians, it could be a tough year ahead. Those who were used to travelling abroad have already had to scale back as the rouble made the cost of visiting foreign cities prohibitive; and rising food prices have made it harder to balance the books for many families.

9.38am GMT

An underwhelming start to trading in London has send the FTSE 100 down by 17 points, or 0.3%, to 6257.

A continued slide in the oil price and a US Dollar that's not going down without a fight are dominating sentiment as people begin to attempt their 2016 forecasts, seeing headwinds for long term earnings.

9.24am GMT

Sports Direct's New Year pay pledge is worth around 15p per hour to around 15,000 workers at its stores (many on zero hours contracts) and some 4,000 agency staff at its depot.

Retail analyst Nick Bubb says it could improve the company's public image, at a price....

Mike Ashley's New Year resolution to be a better employer will go some way to improve Sports Direct's battered PR image, but it will knock c10m off the profit base"

9.10am GMT

Sports Direct's pledge to raise staff wages isn't enough, say campaigners:

Alex Flynn, head of media and campaigns at the Unite union, told the Guardian he was "massively underwhelmed" by the news from Sports Direct.

"Mike Ashley, if he's serious about Sports Direct being one of the best retailers in terms of how it treats its staff on the high street, it's got a massive way to go."

9.09am GMT

Three weeks ago, the Guardian exposed work practices at Sports Direct's warehouses - including that staff are effectively being paid under the minimum wage due to lengthy security checks.

And now, the retailer has announced a 10m plan to raise wages over the legal minimum.

"I realise this is ambitious and it won't be easy, but I believe as a FTSE 100 or even 250 company we have a responsibility to set a high moral standard."

8.52am GMT

2015 really has been a rough year for commodities.

Copper has shed around 25% of its value this year,

Oil: down 35%

"Slowing economic growth and structural reforms in China might contribute to decreased demand for commodities."

8.40am GMT

A quick glance at the oil price shows exactly why the rouble is so weak.

Brent crude began 2015 at around $58 per barrel, and climbed up to $68 by April. But it has since slumped to below $37, a loss of around 35%.

Brent crude below $50 per barrel is too low for the industry to make the investments needed to meet growing global demand. Providing the world economy does not skid into recession, this looks like being the year that the oil price heads back to more sustainable levels.

Forecasting the world in 2016 - our pundits take a punt - https://t.co/g2Eud9fepF https://t.co/DvEUpwxiCa via @FT

8.26am GMT

The Russian rouble could suffer further losses in 2016, unless the oil price bounces back soon.

Alexey Korolenko, a money manager at UralSib Asset Management in Moscow, warns:

"The ruble may weaken further."

"It's hard to expect stronger oil right now. It should rise to $45-$50 per barrel, maybe, by the end of 2016. Reduction of investments should eventually make impact, the question is what the lag will be."

8.12am GMT

Over in Moscow, it's a bracing minus 9 degrees Celsius on the final day of the year.

"We're getting a big drop in oil attributable to the rise in inventories and that is spilling over into commodity currencies."

7.59am GMT

Good morning, and welcome to our final business live blog of 2015, covering events across the financial markets, the world economy, business and finance.

And what a year it's been. We've not been short of drama - with the Greek debt crisis dominating the first nine months of the year.

Our European opening calls: $FTSE 6257 down 17 $DAX 10709 Closed $CAC 4676 down 1 $IBEX 9605 down 37 $MIB Closed

Concerns about traders coming back from holidays in January and aggressively selling off the market may have driven a number of investors to take some of the profits off the table after the good run we have seen over the holiday period.

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