Tobacco firms drag FTSE as pound wavers
The pound had a volatile trading period amid the latest Brexit headlines, recovering from an early sell-off on the back of comments by Michel Barnier before taking a weaker turn.
Barnier, the EU chief negotiator, was reported to have told the EU foreign minister that the main elements of an agreement are ready to present to the UK cabinet this week.
Sterling was given a boost immediately after the news broke, though its gains were later pared back by a strong dollar.
By the end of the day, the pound was trading 0.2 per cent lower against the euro at €1.142. It dropped 0.94 per cent to $1.285.
Meanwhile, the FTSE 100 closed down 52.26 points or 0.74 per cent at 7,053.08, dragged down by tobacco stocks amid reports of a possible ban on menthol cigarettes in the US. Shares in British American Tobacco (BAT) fell by 10.6 per cent to 2,962.5p, for example, hitting their lowest level for nearly five years. Experts said the ban could affect a division generating as much as a quarter of BAT’S annual earnings.
Defence supplier Babcock was 15.8p higher at 616.2p after it hit out at “false and malicious” claims made in a report by a mystery analyst as it moved to assure over its financial health.
Shire was among the top risers on the bluechip index – closing up 90p at 4,702.5p – after Japanese drugs firm Takeda said it will hold an investor vote on its £46 billion acquisition of the company next month.
The biggest risers on the FTSE 100 included Astrazeneca, up 79p to 6,251p, and Bunzl, up 23p to 2,255p. The biggest fallers included Just Eat, down 34.2p to 572.8p.