U.K. stocks fell on Thursday, with oil giants falling after the International Energy Agency (IEA) cut its 2020 production outlook by 140,000 barrels per day (bpd) to 91.9mln.
Meanwhile, U.K. housing market recovery gained further momentum in July as the stamp duty holiday helped to boost demand, survey data from the Royal Institution of Chartered Surveyors showed.
A net balance of 75 percent of survey participants reported an increase in buyer enquiries in July. While enquiries bounced again following the lockdown induced fall seen during March to May, respondents were cautious on long-term prospects.
The benchmark FTSE 100 dropped 56 points, or 0.89 percent, to 6,224 after climbing as much as 2 percent the previous day despite news of the U.K. economy going into recession.
BP Plc declined 1.7 percent and Royal Dutch Shell gave up 2.2 percent after the IEA said the Covid-19 pandemic has cast a long shadow over oil demand.
TUI AG slumped 4 percent after the tour operator said it is considering a rights issue or a sale of part of the business.
Housebuilders were rising amid signs of recovery in the U.K. housing market. Taylor Wimpey rose 1.2 percent and Persimmon jumped over 2 percent.
Precision engineer and manufacturing company Renishaw lost 9 percent after reporting lower annual revenue.
Transport provider National Express plummeted 12.7 percent after posting a large first-half loss.
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