FTSE tumbles amid political developments

Market report Emma Newlands

Sterling rose and the FTSE 100 was left nursing heavy losses as political developments on both sides of the Atlantic played their part in markets.

News that US president Donald Trump had sacked his Secretary of State Rex Tillerson, combined with US inflation data, sent the dollar down sharply against the pound, leaving sterling at $1.398, up 0.5 per cent on the day.

Providing further momentum to the pound were figures from the Office for Budget Responsibility, which upgraded growth projections and forecast a fall in government borrowing and national debt over the coming years.

It came alongside Philip Hammond’s spring statement, in which the Chancellor hinted he will turn on the spending tap following years of austerity.

Against the euro, the pound was also in positive territory, up marginally to €1.127.

But sterling’s gain led to pain for the FTSE 100, which tumbled 75.98 points to 7,138.78. Connor Campbell, financial analyst at Spreadex, said the index was dragged even lower by the spring statement reigniting fears of a Bank of England rate hike.

The biggest risers on the FTSE 100 were Antofagasta, up 26.8p to 914.6p, GKN, up 5.9p to 430p, and Easyjet, up 22p to 1,629.5p. The biggest fallers included BT Group, down 7.85p to 2.27.15p, WPP, down 36p to 1,159p, and 3i Group, down 25p to 898p. Retailer French Connection has said it is “very close” to returning to profit, but added that the high street would remain under pressure. Shares plummeted yesterday after the Irish foodto-go supplier warned that problems at its US division would dent profits.