MARKET REPORT
sion.barry@walesonline.co.uk LONDON’S blue-chip index fell into the red as investors worried whether a financial crisis in Turkey could spread across Europe. The FTSE 100 ended the day down 0.3% or 24.56 points at 7642.45.
Investors were keeping a close eye on Turkey, which has been rattled by a standoff with the US over its detention of an American evangelical pastor. That has compounded fears over the country’s high inflation, current account deficit and growing private sector debt.
The Turkish lira has already fallen nearly 50% in the past year and faced further pressure yesterday despite a pledge by Turkey’s central bank to provide liquidity to the country’s banks.
Turkey’s woes also piled pain on commodities, helping send Brent crude prices down more than 0.8% to US$72.29 per barrel, as investors worried about how contagion could affect global demand. The simmering USChina trade spat also threatened to dent global growth and appetite for oil.
In currency markets, the pound was hovering at its lowest level since June 2017 as it traded nearly flat against the US dollar at 1.276.
Against the euro, sterling was up around 0.1% at 1.118.
In UK stocks, Clarkson jumped 170p to 2,755p despite seeing pre-tax profts dip from £21.9m to £18m in the first half of the year.
The figures come after Clarkson issued a profit warning in April, saying earnings for both the first half and full year were likely to be “materially below those of last year”.
Chemring tumbled 29p to 207p, having confirmed it could take a £20m hit after an employee died and another was hurt in an accident at its site near Salisbury on Friday.
Esure surged 63.2p to 267.2p after the insurer said it is in advanced discussions over a £1.2bn takeover by private equity firm Bain Capital.
The board of Esure has indicated to Bain Capital that it would be “minded to recommend” a firm offer.
The biggest risers on the FTSE 100 were Evraz up 10.6p at 520.6p, Admiral Group up 32p at 2,019p, Direct Line Insurance up 4.8p at 327.3p, and Hargreaves Landsdown up 30p at 2,121p.
The biggest fallers were TUI down 39p at 1,526.5p, Paddy Power Betfair down 135p at 7,120p, GVC Holdings down 20p at 1,105p, and Next down 100p at 5,568p.