Footsie edges downwards as pound slumps

Market report Perry Gourley

The pound slumped to its lowest level against the US dollar since November, with pressure mounting on Prime Minister Theresa May over slow Brexit progress as she took part in an EU summit in Brussels.

May was facing pressure from her EU counterparts over the slow pace of Brexit negotiations and lack of clarity over its plans while European Commission president Jean-claude Juncker said plans were being made for a “no deal” exit.

Connorcampbell,afinancialanalystatspreadex, said: “Concerns about a more pessimistic Brexit outlook from the country’s businesses, a lack of faith in Theresa May heading into Thursday’s EU summit and disappointment at a dovish message from Bank of England MPC member Jon Cunliffe left the pound in a sorry state.”

The FTSE 100 ended the day nearly flat, down 6.06 points, at 7,615.63.

Shire was the best-performing stock on the FTSE 100, rising 127p to 4,221.5p after shareholders voted down proposals by a group of rebel investors trying to derail its takeover by Takeda Pharmaceuticals.

Investors failed to gain backing for a proposal that would require shareholder approval for major acquisition, gaining only 10 per cent of the vote at Takeda’s AGM.

Tobacco giant Imperial Brands jumped 77.5p to 2,811.5p after announcing it had taken a stake in Oxford Cannabinoid Technologies, which focuses on research, development and licensing of cannabis-based compounds and therapies. BAE Systems rose 7.8p to 632p on news of a £20 billion contract to build a new fleet of warships. The public transport operator said a financial hit taken over the East Coast rail franchise provided clarity for investors The pubs and brewing group behind the Belhaven beer brand saw annual profits fall on the back of “unprecendented” cost pressures