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FTSE 100 falls back despite oil deal

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(Close): London's leading share index ended the day higher despite disappointment over a deal to tackle a global oil supply glut.

The FTSE 100 closed up 37.89 points at 5,862.

Brent crude shrank from earlier gains, falling 3.5% to $32.12. US light crude was flat at $29.09.

Oil ministers led by Russia and Saudi Arabia agreed to freeze output at January levels if other crude producers did the same.

Augustin Eden, research analyst at Accendo Markets, added: "People are hopeful when they hear this talk of output freezes, but it's already now looking as if that's not going to happen."

Stephane Ekolo, chief European strategist at Market Securities, said: "This agreement needs the nod from other Opec and non-Opec nations, which seems unlikely. Therefore market participants turned again cautious."

Merlin Entertainments, which announced a new chief financial officer on Tuesday, topped the leaderboard with a 2.9% rise to 413.7p.

The biggest faller on the FTSE 100 was Standard Chartered, which slid more than 5.3% to 428p after two brokerages cut their target prices following a recent rally.

The CAC 40 in Paris closed up 0.1%, while the Dax in Frankfurt fell 0.7%.

On the currency markets, the pound fell 0.8% against the euro at €1.2828 and was down 0.9% against the dollar at $1.4296.

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