FTSE retreats despite boost by SSE chatter

Market report Emma Newlands

London’s premier index retreated from record heights despite a hefty jump from utility giant SSE over talks to launch a new company with Npower-owner Innogy.

The FTSE 100 Index closed down 49.17 points to 7,513.11, dropping back from an all-time high in the previous session when the top tier reached 7,562.28. The drop came despite SSE rising more than 2 per cent. The new entity would be listed and SSE would “demerge its shares to its shareholders”.

On the currency markets, the pound drifted down against the US dollar, as the greenback got a boost following a solid update from the US jobs market, which showed 6.09 million positions were available at the end of September.

Sterling was off 0.2 per cent versus the US dollar at $1.31, despite the Halifax index showing annual house price growth had accelerated in October, pushing average property values to a new high. The pound was 0.1 per cent higher versus the euro at €1.13.

Sky was 1 per cent lower after it emerged that 21st Century Fox had discussed selling its stake in the broadcasting giant to Disney as part of a wider deal. Shares were down 9.5p at 930p, with Disney eyeing a possible swoop for Fox’s movie assets and part of its TV assets.

Primark owner Associated British Foods sank 125p to 3,218p, as it joined calls for a Brexit transition deal amid fears over customs chaos.

The biggest risers on the FTSE 100 included DCC, up 100p to 7,390p and Hargreaves Lansdown, up 14p to 1,590p. The biggest fallers included Direct Line Insurance,down11.1p to 355.9p and Kingfisher, down 9.1p to 307.5p. Investors responded to “well-advanced talks” between SSE and Germanbased Innogy over creating a combined business. The security services giant was the biggest faller on the FTSE 100 after it rolled back its annual revenue targets and saw sluggish trading in the Middle East.