Sterling limits FTSE’S drop into the red

Top-flight shares in London finished the day in the red, but losses were pared by a dip in the value of the pound.

The FTSE 100 index was 26.32 points or 0.35 per cent lower at 7,425.57.

David Madden, market analyst at CMC Markets UK, pointed to trade tensions and a global growth downgrade from the International Monetary Fund as factors weighing on European stock markets.

“Trade tensions between the EU and the US have heated up, and either side have accused the other of subsidising the aerospace sector,” he said, adding that the EU economy is “cooling” and the prospect of $11 billion (£8.44bn) worth of tariffs on European goods “is likely to sour sentiment even further”.

Markets were also weaker on the back of a decline in oil prices, following Monday’s surge to the highest level so far in 2019. A barrel of Brent crude oil was trading 0.45 per cent lower at $70.72.

The London market declined less than its European peers (the French Cac dipped 0.65 per cent and the German Dax 0.94 per cent) due to the decline in the pound as Brexit uncertainty continued to hang over the currency. Sterling fell 0.28 per cent against the euro to €1.157 and was down 0.13 per cent at $1.304.

The Debenhams saga came to an apparent end for shareholders, wiping out their holdings, as the retailer went into pre-pack administration.

Lastly, Cake Box reported a rise in full-year sales as the retailer continues to enjoy stellar growth. Its shares closed up by 2.5p to 159p.