Oil supply restrictions boost UK energy stocks

Markets fell on Friday, after Chinese real estate giant, Evergrande, filed for bankruptcy in New York. The hawkish Fed minutes published mid-week also didn't help. Meanwhile, new data showed British retail sales volumes fell by a bigger-than-expected 1.2% between June and July, partly due to heavy rain deterring shoppers. Retail sales were 3.2% lower than at the same time last year. The FTSE 100 dropped 0.7% on Friday and-3.5% over the week.

The UK's FTSE 100 bounced back 0.3% this morning, lifted by energy stocks, as oil prices rose due to restrictions in supply implemented by Saudi Arabia and Russia.

In other news, Rightmove published data showing that asking prices for homes in Britain fell sharply this month, hit by rising interest rates.

Housebuilder Crest Nicholson dropped 14.4% after it lowered its annual profit guidance.

Things to read today:

China’s Surprise Move on Loan Rates Shows Banks Under Pressure (Bloomberg)

Sterling Is Heading for a Wile E. Coyote Moment (Bloomberg)

China’s 40-Year Boom Is Over. What Comes Next? (WSJ)