BP & Shell shares drop with oil price

Equities

The FTSE 100 closed down 0.4%, affected by a downturn in commodities which pulled down stocks across the board. This negative movement was particularly felt by precious metal miners which slumped 3.8%, marking their worst performance in over a month due to a significant retreat in gold prices influenced by a stronger dollar.

Major energy companies also faced a tough day; BP’s shares fell 3.8% after S&P Global lowered the company's credit outlook, while Shell experienced a 2.1% decrease as oil prices dipped more than 1%.

Turning our attention to the United States, the stock markets there ended the day with modest gains, despite weaker-than-expected job data which bolstered expectations of a forthcoming rate cut by the Federal Reserve. The Dow Jones Industrial Average rose by 0.36% to 38,711.29, the S&P 500 inched up by 0.15% to 5,291.34, and the Nasdaq Composite increased by 0.17% to 16,857.05.

Megacap technology stocks like Amazon, Alphabet, Nvidia, and Microsoft saw their shares end higher, recovering from early session losses.

Axos Financial notably dropped after Hindenburg Research announced a short position on the stock. Bath & Body Works also took a substantial hit, tumbling 12.8% following a downward revision of its quarterly profit forecast.

In the energy sector, giants Exxon Mobil and Chevron fell by 1.6% and 0.8%, respectively.

Forex & Commodities

The US dollar saw an uptick, moving away from its recent multi-month lows against major currencies such as the euro, sterling, and Swiss franc. This rise comes ahead of a much-anticipated US nonfarm payrolls report. The dollar's slight gain was observed despite a drop against the yen, which climbed to a three-week high, influenced by remarks from Bank of Japan officials and speculation about potential policy adjustments.

Meanwhile, sterling reached its highest point since mid-March at $1.2818 but later declined to $1.2777. Against the Swiss franc, the dollar reached lows not seen since March, reflecting a broader currency fluctuation trend amidst various economic updates.

In the commodities sector, gold prices fell by 1% to $2,326.98 an ounce, while oil prices lingered near four-month lows. Brent crude slightly increased by 4 cents to $77.56 a barrel, and US West Texas Intermediate crude was steady at $73.25 a barrel.