Sky takeover fails to stop Footsie falling

Sky shot to the top of the FTSE 100 after Comcast won the long-running battle for the broadcaster with a £30 billion bid.

Shares in the company closed higher by 136.5p, or 8.6 per cent to 1,721.5p in the first trading session since Saturday’s dramatic end to one of the City’s most complex and convoluted takeover sagas in recent memory.

But the boost to the company’s shares failed to lift the blue-chip index as European markets dipped into the red thanks to further trade tensions.

The FTSE 100 ended the day 31.82 points lower at 7,458.41.

“There is a growing sense that the trade spat will drag on, and this is weighing on sentiment,” commented CMC Markets UK analyst David Madden.

Meanwhile, Thomas Cook shares plunged 21.85p, or 28 per cent to 56p after the company issued a profit warning.

The firm said that the “unprecedented” prolonged period of hot weather across the continent meant more people spent June and July enjoying the sunshine at home and put off booking holidays abroad.

As a result, Thomas Cook now expects to deliver full-year underlying operating profit of about £280 million, down from previous estimates of £323 million.

Thomas Cook’s statement had a negative impact on rival travel business Tui, which is due to report an update on Thursday. Shares dropped 42p, or 2.95 per cent, to 1,382p.

As well as Sky, the biggest risers on the FTSE 100 included NMC Health up 52p to 3,362p.