FTSE 100 Lower; BP to Sell Majority Stake in Castrol, GBP/USD Rises Above 1.35

The FTSE 100 slipped 0.2% on Christmas Eve during a shortened trading session across several European markets, with Paris and Amsterdam also operating half days. 

France’s CAC 40 edged up 0.1%.

BP shares firmed at the open after the company announced it will sell a 65% shareholding in its Castrol business to Stonepeak following a strategic review. 

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The deal values Castrol at an enterprise value of $10.1 billion. BP said it expects total net proceeds of about $6 billion, which includes roughly $0.8 billion for the pre-payment of future dividend income on its remaining 35% stake and other adjustments.

The GBP strengthened slightly against the U.S. dollar, rising 0.1% to trade above 1.35.

In the FTSE 250, Supermarket Income REIT said it has completed the acquisition of three U.K. supermarkets for £97.6 million, reflecting an average net initial yield of 5.5%.

Among blue-chip movers, METLEN Energy & Metals gained 2.2%, making it the top FTSE 100 riser. Schroders rose 1.1%, while housebuilder Barratt Redrow added 0.6%.

On the downside, Games Workshop fell 1.6%, the steepest decline on the index. IAG slipped 0.9%, and AstraZeneca dropped 0.8%, contributing to the FTSE 100’s modest early-session weakness.