FTSE slumps on cocktail of negative news

London’s blue-chip index plunged heavily following a toxic combination of Brexit fears and weak construction figures.

The FTSE 100 closed 237.78 points lower at 7,122.54, suffering its heaviest slump since 2016 amid a cocktail of negativity, which included news that the US could place $7.5 billion of tariffs on EU goods.

David Madden, market analyst at CMC Markets UK, said: “The energy sector plus the mining sector are nursing large losses on the back of the dismal manufacturing reports from major economies around the world this week.

“British banks, in addition, to insurance groups have been knocked by worries in relation to Brexit.”

Sterling improved marginally, but currency traders were left largely unimpressed by Boris Johnson’s plans to secure a Brexit deal. The pound edged up 0.2 per cent versus the dollar at $1.231, and crept 0.04 per cent higher against the euro at €1.124.

In company news, Tesco was one of only two FTSE 100 firms to end the day in the black after the retailer announced its chief executive Dave Lewis will depart next year.

Lewis, who has headed up the UK’S largest supermarket since September 2014, will be replaced by Boots lifer Ken Murphy after claiming the grocer’s turnaround is “complete”. Shares rose 0.5p to 240p.

Elsewhere, Metro Bank shares leapt 48p to 228p after it launched a fresh bond sale worth £300 million, hours after founder and chairman Vernon Hill confirmed he will quit the board of the challenger bank by the end of 2019.