Unwelcome updates drag on FTSE 100

The FTSE 100 closed out the session in the red as gloomy updates from big hitters including Premier Inn-owner Whitbread dragged on the blue-chip index.

Market optimism over the Us-china trade deal faded in light of unwelcome corporate news, sending the FTSE 100 Index down 32.99 points to close at 7609.81.

David Madden, market analyst at CMC Markets, said: “The interim trade agreement between the two largest economies in the world took a long time to be hammered out, so now dealers are wondering what will be the next big story to move the markets.”

Sterling also pushed the FTSE lower, as the British currency gained 0.2 per cent to $1.31 and 0.4 per cent to €1.18.

In London, Whitbread shares finished 250p lower at 4,587p after the hotel owner revealed drooping sales as business and leisure bookings took a hit. In particular, it reported declines in the volume of business customers using its hotels outside of London.

FTSE 250-listed recruitment firm Hays was another big faller as it alerted over profits after saying strikes in France, political uncertainty in the UK, a slowing German economy and the Australian bushfires had taken their toll. Shares dropped 5.9p to 166.7p.

Meanwhile Primark-owner Associated British Foods was bucking the trend, with rising revenues on the back of new store openings.

This overshadowed news of a marginal fall in the budget fashion chain’s UK like-for-like sales and helped send shares up 106p, or 4.2 per cent, to 2,661p.