FTSE suffers over impact of Carney hints

Market report Emma Newlands

London’s blue-chip index remained in the doldrums and the pound marched higher as traders shifted their positions in response to a potential interest-rate hike.

The FTSE 100 Index closed down 37.48 points at 7,350.32, as the financial markets continued to take their cues from Bank of England Governor Mark Carney, who had hinted that rates could rise if wages firm and the economy is boosted by stronger business investment.

Multi-nationals stocks were suffering for a second straight session as the pound reached its highest level for more than a month against the greenback, breaking through the psychologically important $1.30 mark.

Shares in pharmaceutical giant Shire drifted down 148p to 4,258p and Diageo slipped 25.5p to 2,286p.

On the currency market, the pound was up 0.4 per cent to $1.298 against the US dollar and flat versus the euro at €1.136.

In UK stocks, Sky was among the biggest risers despite UK Culture Secretary Karen Bradley saying she was “minded” to refer Rupert Murdoch’s £11.7 billion swoop for the broadcaster for further scrutiny. Shares were up 31.5p to 988p after analysts said it was still positive for both companies because it left the door open for a deal.

The biggest FTSE 100 risers included HSBC, up 29.1p to 715.5p, Rio Tinto, up 77p to 3,232.5p, and Glencore, up 6.4p to 290.4p. The biggest fallers included Micro Focus International, down 90p to 2,285p, Coca-cola HBC, down 85p to 2,251p, and International Consolidated Airlines Group, down 22.5p to 607.5p. Shares in the packaging company rocketed to record highs after the firm announced a deal to secure its first foray into the United States. Shares took a dive after the retailer said it was facing “margin pressure” and that comparative sales will be impacted by the timing of the festival of Eid.