Footsie treads water despite US tax cuts

Market report Perry Gourley

The London market struggled to find direction despite US president Donald Trump’s planned overhaul of business taxes fuelling hopes of improved economic growth in the UK.

The FTSE 100 closed up 9.3 points at 7,322.82 after being in the red earlier in the session.

Connor Campbell, financial analyst at Spreadex, said: ”The FTSE continued to lack any momentum whatsoever, sitting flat just above the 7,300 mark. To be fair, on the UK’S most pressing concern – Brexit – the pound and FTSE received some seriously mixed messages.

“David Davis claimed that ‘decisive steps forward had been made’ during the latest round of negotiations, only for his EU counterpart Michelbarniertoarguethattheywere‘notthere yet in terms of achieving significant progress’.”

Men’s suit retailer Moss Bros closed down 5p at 95p despite posting a healthy rise in half-year sales and profits. Pre-tax profit at the high street firm rose 15.7 per cent to £4.2 million on revenue of £66.6m, up 4.3 per cent.

Travel giant TUI edged down 3p at 1,262p after it said it is on track for a double-digit surge in annual profits despite a hit from the recent devastating hurricanes across the Caribbean and Florida. It said its “primary focus” has been on supporting holidaymakers in resorts impacted by Hurricane Irma, as well as rebooking customers in alternative destinations.

Tobacco giant Imperial Brands fell 133p to close at 1,372p after it said it was thrashing out a rescue deal for Palmer & Harvey (P&H) to ensure the troubled wholesaler has a “sustainable future”. The FTSE 100 firm is working with “other stakeholders” to come up with a plan. Shares in the logistics group rose strongly after it said it had signed a threeyear contract worth £19m with furniture retailer IKEA. The online fashion retailer said its joint chief executive Carol Kane sold 4.7 million shares worth £10.7m after a positive trading update.