FTSE falls as Brexit hopes elevate pound
The pound climbed higher amid hopes of an imminent Brexit breakthrough, putting pressure on top-flight stocks in London.
Negotiators told diplomats that a deal to solve the Irish border issue is now “very close”.
The pound was up 0.66 per cent to $1.31 and climbed 0.75 per cent against the euro to €1.39.
But the appreciation in sterling weighed on the FTSE 100, which finished the day 99.8 points, or 1.34 per cent, lower at 7,318.54. European markets were also down.
David Madden, market analyst at CMC Markets, said persistent fears surrounding emerging markets and uncertainty over Italy were to blame. “The US released a mixed non-farm payrolls report and the yields remain reasonably high, and traders are worried it could put pressure on emerging market economies,
“The administration in Rome are keen to press ahead and increase the budget deficit in the near-term in an effort to ramp up economic activity.”
There was also the news that Unilever is to remain a FTSE 100 company after bowing to pressure from shareholders and scrapping plans to move its corporate headquarters from London to Rotterdam. The decision was welcomed by many, but shares closed down by 0.61 per cent at 4,053p. The biggest risers on the FTSE 100 included
Severn Trent, up 32.5p to 1,812p, Rentokil,
up 5.7p to 334.1p, and British Land, up 8.4p to 585.2p. The biggest fallers included Ocado
Group, down 40.4p to 803.4p, Anglo American, down 74p to 1,669.2p and Rio Tinto, down 157p to 3,744p.