Trump fears continue to spook market

Market report Perry Gourley

The London market followed global stocks into the red as investors took a dim view of the US president’s ability to deliver tax cuts and fresh infrastructure spending.

The FTSE 100 index closed down 43.32 points at 7,293.5 as European markets doubted whether Donald Trump could honour his campaign promises after failing to push through a repeal of Obamacare.

Jasper Lawler, senior market analyst at London Capital Group, said: “Stocks were under pressure following the collapse of Donald Trump’s first attempt to overturn Obamacare. For many, the healthcare bill has been the moment that crystallised the risk of economic failure Trump.

“Ironically, the reaction in currency markets to his healthcare failure will suit Donald Trump. Trump wants to improve the competitiveness of US companies abroad and a weaker dollar will help him deliver it.”

BT shares fell 0.7p to 324.95p after being stung by a record £42 million fine by the telecoms watchdog, which is also forcing it to pay out £300m in compensation to rivals like Vodafone over delayed high-speed cable installations.

Aberdeen-based Firstgroup shares jumped 4.1p to 128.2p after it was awarded a contract with Hong Kong’s MTR to run South West Trains for seven years from August.

Shares in Cobham fell 2.4p to 126.8p amid news that the embattled aerospace and defence firm faces an investigation by the financial watchdog over its handling of inside information. Wood Group shares fell 3p to 751p after it won a $50m contract with Premier Oil. The Edinburghbased materials testing company said it had received a number of proposals for a possible cash offer for the firm. Shares in the defence company were hit after it announced it had agreed to the termination of a UK nuclear decommissioning contract.