Strong Pound And Us Market Weakness Drags Ftse 100 Lower

Market report

London’s top index handed back some of its recent gains after oil stocks, a resurgent pound and a weak opening for US markets weighed on sentiment.

Fed chairman Jerome Powell’s comments on the potential for a dialling down of the pace of rate hikes supported trading at the start of play but positivity faded later in the day.

The FTSE 100 finished the day down 14.56 points, or 0.19%, at 7,558.49.

Sterling was buoyed by a knock to the dollar following Mr Powell’s comments, which impacted currencysensitive stocks such as Shell and BP.

The pound was up 1.62% against the dollar at 1.225 and was 0.68% higher against the euro at 1.166 at the close.

The main US markets drifted on Thursday despite inflation figures showing a moderation in October.

Meanwhile, the other major European indexes were slightly higher at the close despite pulling back later in the session due to the knock-on from trading sentiment in the US.

The Dax improved 0.65% by the end of the session and the French Cac finished 0.23% higher.

In company news, City broker Peel Hunt saw shares slide as half-year profits crashed to just £100,000 due to a dearth of deals and flotations on the London market and as economic woes hammered investor confidence.

The group reported pre-tax profits tumbling 99.7% from £29.5 million a year earlier, with revenues down 42.4% to £41.1 million in the six months to September 30.

Shares were down 4.5p at 78.5p at the close as a result. Elsewhere, Next edged lower after it bought fashion rival Joules out of administration in a deal alongside the firm’s founder, Tom Joule.

Next said it will own 74% of the troubled brand in a move which will secure the future of around 100 shops and 1,450 workers.

It saw shares move 26p lower to 5,814p.

The price of oil moved higher as it was boosted by the weaker dollar and hopes that the Chinese Government will avoid a slump in demand by slowing the easing of Covid restrictions.

Brent crude oil increased by 1.29% to 88.09 US dollars per barrel when the London markets closed.

The biggest risers in the FTSE 100 were Ocado Group, up 42.2p at 664.8p, Intermediate Capital Group, up 74.5p at 1,268p, Schroders, up 21p at 463.4p, Prudential, up 36.6p at 1,016p, and Scottish Mortgage Investment Trust, up 26.8p at 796.4p.

The biggest fallers of the session were Pearson, down 51.6p at 943.6p, Rolls-royce, down 3.99p at 86.93p, Standard Chartered, down 22.6p at 594.8p, Anglo American, down 106p at 3,301.5p, and Shell, down 62p at 2,382p.