FTSE finishes 2018 in red as fears remain

The pound strengthened and the FTSE 100 ended in negative territory on the last trading day of the year, with investors gearing up for what is likely to be a tricky 12 months ahead.

Sterling was up 0.6 per cent against the US dollar at $1.278 at the London market close, buoyed by news that a cross-party group of MPS will push for an extension of Article 50 to avoid a calamitous no-deal Brexit. Versus the euro, the pound gained 0.7 per cent to hit €1.116.

Fiona Cincotta, a senior market analyst at City Index, said: “Put aside to make room for the Christmas dinner, Brexit has been on the back burner for a few days, but as soon as the turkey leftovers are eaten, Parliament will have to face another Brexit vote next month.”

The FTSE 100, meanwhile, edged down 5.84 points, or 0.09 per cent, to finish at 6,728.13, despite positive vibes from US president Donald Trump over the weekend regarding Sinous trade talks.

It means London’s top flight is £242 billion down compared with its closing price of 7,687.77 on 29 December, 2017. Its highest point this year was 7,877.45 on 22 May, and lowest 6,585.91 on 27 December.

Shares in Sir Martin Sorrell’s new marketing communications venture closed up 1p at 119p after it reported soaring revenues, as the advertising tycoon continues to take the challenge to his old firm WPP.

The biggest risers on the FTSE 100 included Rentokil, up 10.2p at 337.2p and Micro Focus, up 30p at 1,383p, while the biggest fallers included 3i Group, down 22p at 773.4p, and BP, down 6.75p at 495.95p.