FTSE suffers from cocktail of concerns

A stock market bloodbath saw £37 billion wiped off the FTSE 100 as a host of weak economic data pummelled shares.

London’s blue-chip index closed down 147.72 points at 7,207.59 as problems in the eurozone, the unresolved Us-china trade dispute and Brexit uncertainty conspired to spook traders.

Eurozone PMI data came in at the lowest level since 2014 and the manufacturing sectors in Germany and France, the two largest economies in Europe, experienced contraction.

CMC market analyst David Madden said: “The updates underlined how fragile the eurozone is, and traders are worried about how the region would cope in the event of a no-deal Brexit.”

Among a sea of red stocks, Sainsbury’s managed to eke out a small gain after the supermarket, along with Asda, offered to sell up to 150 stores as part of efforts to address competition concerns over their £12 billion merger. Sainsbury’s shares closed up 0.2p at 236.8p.

The pound, meanwhile, was trading higher as currency traders reacted positively to the likelihood of a lengthy Brexit delay and the prospect of Prime Minister Theresa May quitting next week. Sterling was up 0.75 per cent versus the dollar at $1.320 at the London market close, while the British currency rose 1.5 per cent against the euro to hit €1.169.

Under a plan set out at the EU summit, leaders agreed to extend Brexit to 22 May if the Prime Minister can finally get MPS to back her deal in a third Commons “meaningful” vote.

However, if she fails the UK will have to set out an alternative way forward by 12 April, which could mean a much longer delay.