Glencore fall fails to keep Footsie in red

Market report Emma Newlands

The FTSE 100 made gains despite taking a hit on the news that Glencore had become embroiled in a money-laundering inquiry.

Glencore’s shares tanked when the mining giant said it was slapped with a US subpoena.

The company said the US Department of Justice is seeking documents and other records “with respect to compliance with the Foreign Corrupt Practices Act and United States money-laundering statutes”. Glencore’s shares slumped 10 per cent on the news, and closed the day down 8.1 per cent at 321p, making it the biggest faller on the FTSE 100.

The FTSE 100 took a knock initially, but closed the session 0.6 per cent, or 45.44 points, higher at 7,593.29.

Fiona Cincotta, senior market analyst at City Index, said: “The improved sentiment on the market meant investors shrugged off falls in Asia overnight, troubles for Glencore and a stronger pound.”

Sterling edged up against the dollar after data showed construction activity had hit a seven-month high. Sterling was up 0.35 per cent against the dollar at £1.318, and rose 0.16 per cent against the euro at €1.130.

In UK stocks, WPP edged down 1p to 1,159p, after news that it is set to go up against its former chief executive, Sir Martin Sorrell, in a takeover tussle for control of Netherlands-based Mediamonks.

The biggest risers on the FTSE 100 were BT Group up 6.15p at 223p, British American Tobacco up 90p to 3,910p, and the biggest fallers included RSA Insurance down 21.6p to 656.4p and Burberry down 57p to 2,091p. The online fashion darling confirmed that former ITV and Royal Mail boss, Scots-born Adam Crozier, will take over as chairman later this year. Shares in manufacturing firm Mcbride were on the slide after the company warned that profits will not meet market expectations.