Con­cern over US rates drags Foot­sie lower

The Scotsman - - Markets - Market re­port Perry Gourley

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.

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