White House turmoil drags FTSE further

Market report Emma Newlands

The FTSE 100 gave up gains to finish in the red, with European stock markets following Wall Street as turmoil in the White House continues to weigh on sentiment.

London’s top flight closed down 6.09 points, at 7,132.69, having spent most of the day in positive territory. Analysts pointed to the departure of Donald Trump’s secretary of state Rex Tillerson on Tuesday along with growing fears of a trade war as dragging down the Dow Jones, which had a knock-on effect.

Connor Campbell, financial analyst at Spreadex, said: “Given that the European markets have been regularly taking their cues from the US in the last few weeks, it was no surprise that the region’s indices began to shed their morn- ing growth after the bell rang on Wall Street.”

Prudential topped the FTSE 100 after announcing plans to split its UK and European unit from the rest of the business, as it booked a 6 per cent rise in group profits for 2017. Shares ended up 5.07 per cent at 1,918p.

Construction giant Balfour Beatty rose by 1.84 per cent to 282p after it reported annual profits more than doubling despite a £44 million hit from the collapse of Carillion. On Aim, Conviviality shares were suspended after the Bargain Booze owner said it owes the taxman £30m, which could further hit profits. In currency markets, the pound was trading broadly flat against the US dollar and the euro at $1.395 and €1.127 respectively. The funeral firm saw its shares bounce back after revealing lowerthan-expected take-up for its “no frills” option despite slashing prices. Shares slipped despite the supermarket giant cheering another “strong” year after the group rung up a hike in annual sales and profits.