Turkey’s financial jitters still weigh on UK stocks
The FTSE 100 spent another session in the red as jitters over Turkey’s financial crisis continued to dampen appetite for European stocks.
London’s blue-chip index ended the day down 0.4% or 30.81 points at 7611.64.
Investors have been slow to reembrace European stocks amid concerns of a contagion effect from Turkey’s currency crisis, triggered by worries over President Erdogan’s economic policies and a trade and diplomatic dispute with the US.
The two countries are at loggerheads over Turkey’s detention of American evangelical pastor Andrew Brunson, with President Trump exacerbating the feud by doubling steel and aluminium tariffs on the country. Mr Erdogan has responded by telling Turks to boycott US electronic goods.
Sterling was mixed, trading lower by around 0.3% against the US dollar at 1.272 but rising 0.2% versus the euro to trade at 1.121.
Investors were digesting UK data which showed unemployment reached a 40-year low. The Office for National Statistics said unemployment fell by 65,000 in the latest quarter to 1.36 million, the lowest figure since 1976, while the jobless rate came in at 4%.
Brent crude prices were up 0.4% at 73.08 US dollars per barrel as markets reacted to reports that Saudi Arabia had cut its oil production. It added to concerns about restricted supply, with US sanctions on Iran also threatening to hit crude exports.
In UK stocks, Antofagasta was the worst-performing stock after reporting a 16% drop in half-year earnings, having been stung by higher costs and lower production output.
Costs were up due to a stronger Chilean peso, while copper production fell 8.5% and gold production dropped 36%. Shares in the miners were down 66.4p at 886.4p.
Royal Mail shares fell 7.4p to 454.9p after communications regulator Ofcom fined the postal service £50m for a “serious breach” of competition law.
Esure jumped 10.4p to 277.6p, having agreed to a £1.2bn takeover by private equity outfit Bain Capital.
Debenhams shares jumped 0.5p to 13.26p amid rumours that retail boss Mike Ashley might swoop on Debenhams and combine it with House of Fraser.
The biggest risers on the FTSE 100 were United Utilities up 11.8p at 751.4p, Severn Trent up 24.5p at 1,994.5p, Ferguson up 68p at 6,241p, and Pearson up 10p at 926.6p.
The biggest fallers on the FTSE 100 were Antofagasta down 66.4p at 886.4p, TUI down 45p at 1,481.5p, Anglo American down 36.2p at 1,644.2p, and St James’ Place down 22.5p at 1,134p.