FTSE tumbles in advance of election news

Market report Emma Newlands

London’s top-flight index dropped back below the 7,500 mark as the market suffered a bout of jitters ahead of today’s general election.

The FTSE 100 Index was down 46.33 points to 7,478.62, as the leaders of Britain’s biggest parties made last-ditch bids to secure votes as they entered the final furlong in the race to Downing Street.

However, sterling was enjoying a brighter session on the currency markets, lifting 0.4 per cent against the US dollar at $1.295 and climbing 0.6 per cent versus the euro at €1.151.

London’s blue-chip energy stocks suffered as the price of oil fell on concerns over Opec’s production cuts amid escalating tensions in the Middle East.

Brent crude was down 3.5 per cent to $48.39 a barrel, with traders focussing on the decision by Saudi Arabia and a number of other Arab countries to sever ties with Qatar over claims that the country has been supporting regional terror groups. Royal Dutch Shell B and BP were down 21.5p to 2,115p and 8.1p to 456.8p respectively.

In UK stocks, Royal Bank of Scotland surged after the lender avoided a lengthy courtroom battle with shareholder groups over a 2008 rights issue overseen by disgraced former boss Fred Goodwin. Shares rose 3.4p to 255.1p.

The biggest risers on the FTSE 100 Index included Persimmon, up 48p to 2,393p, Lloyds Banking Group, up 1.14p to 70.1p, and Standard Life ,up 5.9p to 381p.

The biggest fallers included Shire, down 145.5p to 4,376.5p, Babcock International, down 18.5p to 906p ,and Johnson Matthey, down 60p to 2,979p. The housebuilder made gains after reporting that its half-year performance was in line with expectations, with “robust demand” for new homes. At the advertising giant’s AGM, a large tranche of its shareholders voted against a £48 million pay package for chief executive Sir Martin Sorrell.