Footsie flat as Trump speech raises concern

Market report Perry Gourley

Stock markets across Europe flatlined or fell after US President Trump ramped up fears of a US government shutdown over plans for a border wall with Mexico.

The FTSE 100 index finished up by just 0.91 points to 7,382.65, after Trump’s comments about the US government not signing off on lifting the country’s debt ceiling in order to secure funding for a border wall with Mexico.

Jasper Lawler, head of research at London Capital Group, said: “A US government shutdown is negative for risk so global equities would likely follow US stocks lower during the period of the shutdown, were it to occur. Were the shutdown to persist, this could catalyse some flows out of the US and into Europe as a relative haven for US political uncertainty.”

Shares in WPP closed down just shy of 11 per cent, or 174p to 1,420p, as the group cut its fullyear revenue forecasts amid slowing demand from consumer goods firms.

The advertising giant predicts full-year likefor-like revenue and net sales will come in between zero and 1 per cent growth. It had previously pencilled in 2 per cent growth.

In a contrast of fortunes, Tesco pushed 1.5 per cent higher, up 2.9p to 187.1p, after the supermarket launched a compensation scheme for investors impacted by the 2014 accounting scandal.

The London market was also lifted by Provident Financial, which saw shares bounce back after crashing on Tuesday. The subprime lender was the biggest riser on the FTSE 100 index – up 12 per cent, or 71.5p to 661p – after plunging more than 66 per cent in the previous session. The retailer saw its shares in demand after investors warmed to plans that will see the firm ramp up its presence in rapidly growing e-sports markets. Shares in the advertising giant fell after the firm cut its full-year revenue forecasts amid slowing demand from consumer goods firms.