LONDON markets posted a mixed performance yesterday as oil giants fell over concerns a global economic slowdown will cool commodity demand. The capital's premier FTSE 100 index fell 0.78 per cent to 6,997.27 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, climbed 0.4 per cent to 17,632.64 points.

The world's largest economies are teetering on the brink of falling into recession, fuelled by soaring inflation and rising interest rates.

That has raised fears over commodity consumption levels, forcing Londonlisted oil mega caps lower.

Shell yesterday said the record profits it has booked amid soaring energy prices are beginning to run out of steam.

That warning sent its shares 2.8 per cent lower yesterday and to near the bottom of the FTSE 100.

Analysts said the FTSE 100 may hold up better than its global counterparts due to its heavy weighting toward "oldeconomy" stocks.

"The FTSE 100 is a value market that's heavily skewed toward commodities and defensive sectors. Oil and gas companies make up around 13.5 per cent of the index and is one of our most preferred global sectors as it will help buffer against higher oil and gas prices as we navigate an energy crisis," Matthew Gilman, strategist at UBS Switzerland AG, said.

OPEC+, the oil cartel, earlier this week said it plans to suck 2m barrels a day out of the market, which is likely to support prices, potentially strengthening Shell and BP.

The pound slid against the dollar.

(c) 2022 City A.M., source Newspaper