FTSE dragged by stimulusrelated fears
The FTSE 100 retreated as concerns over a lack of urgency for US stimulus plans drove caution among traders.
Banking and commodity stocks helped to weigh down the UK index, as multinational companies drifted lower.
London’s top flight closed 94.5 points down at 6,185.62.
Michael Hewson, chief market analyst at CMC Markets UK, said: “European stocks have given up some of their gains of the last few days, after US House Speaker Nancy Pelosi pushed back on the prospect of a stimulus agreement plan in the near future.”
The Dow Jones and S&P 500 were both steady nonetheless, as yesterday’s US jobless claims figure came in below the one million mark for the first time in 21 weeks. Meanwhile,
sterling pushed higher, outperforming its counterparts amid optimism over a trade deal with the EU as politicians gear up to restart talks next week.
The pound rose 0.39 per cent versus the US dollar at $1.308 and was up 0.09 per cent against the euro at €1.106.
Oil and gas firms were weak after the International Energy Agency downgraded its outlook for oil demand due to concerns about the outlook for air travel.
The announcement, which caused oil prices to dip, put Royal Dutch Shell and BP under pressure after three days of decent gains.
The price of a barrel of Brent crude oil fell by 0.18 per cent to $45.07.
In company news, Tui revealed that the pandemic pushed it to a €1.1 billion (£995 million) loss in its third quarter after it halted holidays. Shares in the company closed 22.6p lower at 344.7p.
Topps Tiles saw shares jump after it said a surge in DIY activity means it is set to post a modest profit for the current financial year. It closed 4.8p higher at 48p after it told investors that like-for-like sales had jumped by 15.5 per cent over the six weeks to 8 August.
Elsewhere, funeral companies shot up in value after the competition watchdog abandoned some remedies it was considering to fix the sector because the coronavirus pandemic has made them unsafe to implement.
Dignity soared by 244p to 634p after the Competition and Markets Authority confirmed its initial findings from its analysis of the industry.