FTSE buoyant but European peers overtake

Market report Emma Newlands

The FTSE 100 lagged behind its European counterparts, which were buoyed by a drop in the euro amid news that the European Central Bank (ECB) will start cutting its bond buy programme in January.

London’s blue-chip index ended the day up 39.29 points to 7,486.5, while the French CAC 40 and German Dax jumped 1.5 per cent and 1.4 per cent respectively.

However, ECB president Mario Draghi played down the eurozone’s inflation trajectory, signalling that a rate hike might be further off than previously expected.

Connor Campbell, a financial analyst at Spreadex, said Draghi’s comments “kick any ECB rate hike well into the future – maybe even until after [his] tenure at the top comes to an end in October 2019”.

Sterling was up 0.35 per cent versus the euro at €1.126, while the pound slid 0.6 per cent against the US dollar to $1.318.

In UK stocks, Barclays was the worst performer on the FTSE 100, falling 14.6p to 182.4p despite reporting a rise in pre-tax profit from £837 million to £1.1 billion in the third quarter.

Madame Tussauds and Alton Towers owner Merlin saw its shares edge higher by 1.2p to 369.3p amid news that it would invest £265m to open a Legoland theme park in New York as it presses ahead with global expansion plans.

The biggest risers on the FTSE 100 included Unilever, up 136.5p to 4,225p, Relx ,up49pto 1,733p, and Bunzl, up 47p to 2,288p. The biggest fallers included Barratt Developments, down 29.5p to 669p, Glaxosmithkline, down 49p to 1,380p, and Shire, down 74p to 3,523p. The transport firm pointed to profit and passenger growth through “continued international strength and improved UK performance”. Shares in the financial giant tumbled after poor trading at its investment banking arm overshadowed a rise in thirdquarter profit.