Concern over US rates drags Footsie lower
The FTSE 100 ended the week in the red as concerns over the prospect of rising US interest rates and the stand-off between Rome and Brussels conspired to hit stocks.
London’s top tier closed down 35.34 points, or 0.49 per cent, at 7,105.34. It came following the US Federal Reserve meeting, where policymakers signalled that interest rate hikes are on the cards.
David Madden, market analyst at CMC, said: “Traders are worried about interest rate hikes from the Fed, and the political situation in Italy.
“The US central bank announced that additional interest rate hikes are in the pipeline, and this has soured sentiment.
Rome and Brussels are at loggerheads over the proposed budget.
Italy’s economy minister, Giovanni Tria, said that the EU’S proposal to reduce the deficit would be economic ‘suicide’.”
Informa shares were in the ascendancy after the events business booked underlying revenue growth of 3.9 per cent in the first ten months of the year of rival UBM.
This puts the company on track to meet its underlying revenue growth target of 3.5 per cent. Informa also confirmed that it is on track to make savings of at least £50 million in 2019, with more synergies pencilled in.
Investors lapped up the news, sending shares up 18.4p at 710.6p. Other big risers on the FTSE 100 included
Easyjet, up 26p at 1,254p, Imperial Brands, up 56p at 2,750p, and National Grid, up 15.7p
at 855.7p. Biggest fallers included Burberry, down 91p at 1,773.5p.