FTSE dragged into red amid storm of woes

Market report Emma Newlands

Markets were lower as concerns about Britain’s departure from the European Union, Italy’s budget woes, and Us-china trade relations weighed on investors.

The pound continued to weaken on Brexit uncertainty. The Democratic Unionist Party refused to back the UK government in a series of Commons votes on the Budget, saying the withdrawal agreement reached in Brussels last week breaches a guarantee that Northern Ireland would not be treated differently from the rest of the UK.

Elsewhere, Bank of England governor Mark Carney has backed Theresa May’s EU withdrawal plans and warned a no-deal Brexit would be the “worst outcome”. Sterling was down 0.3 per cent against the US dollar at $1.281, but up 0.3 per cent versus the euro to €1.125.

Meanwhile, the FTSE 100 index fell 52.97 points, or 0.76 per cent, to close at 6,947.92.

David Madden, market analyst at CMC Markets, said: “Investment sentiment has been slipping recently as worries about Italy, Brexit and Us-china trade relationship have prompted traders to become risk-adverse. Today, we are seeing a wide-range sell-off as global sentiment has taken another turn for the worst.”

Easyjet shrugged off strike woes and surging costs to notch up a 41 per cent jump in annual profits, but closed down 5.5 per cent to 1,110.5p.

The biggest risers on the FTSE 100 included Compass Group up 85.50p to 1,673p, Just Eat up 16.60p to 550.40p, and 3i Group up 23p at 832.6p. The biggest fallers included Evraz down 33.20p to 515.2p, Ashtead down 89.50p to 1,708.5p, and GVC down 33.50p to 746.5p.