FTSE 100 opens lower

Tuesday, 02 September 2008 12:00

Weak metal and oil prices hit the FTSE 100 on opening, pushing it down slightly to 5,599.90.

The blue-chip index climbed to 5,620.20 by 09:00 BST, as service industry stocks benefited from the drop in oil prices after Hurricane Gustav caused less damage than was feared.

Crude prices fell to below $109 a barrel after recent spikes prompted by the shut-down of oil operations in the Mexican Gulf ahead of the storm.

But as the storm lost some of its power, oil prices started to fall yesterday.

Shares in British Airways rose 5.64 per cent this morning to 276.5p, while shares in Thomas Cook climbed 5.01 per cent to 241.25p.

Hotel and restaurant group Whitbread was also higher, up 3.29 per cent.

In a reversal of recent fortunes, energy stocks have continued their fall this week. Tullow Oil is down 5.5 per cent to 747.5p, while BG Group dipped 3.18 per cent.

Mining stocks were also down, with Anglo American down 5.18 per cent and BHP Billiton falling 4.49 per cent.

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