FTSE edges down at end of rough week

THE mood simmered on UK markets yesterday as the dust settled on a tumultuous week in British politics.

The pound stabilised a day after its worst one-day drop since June 2016, climbing against the US dollar but dropping against the euro.

Sterling was up 0.5 per cent at 1.283 US dollars and down 0.2 per cent at 1.125 euro.

A weaker dollar supported the pound after comments from two US Federal Reserve officials were more dovish than expected.

Fiona Cincotta, senior market analyst at City Index, said calmer political newsflow in the UK had also helped.

“The pound was in a more upbeat mood on Friday as Brexit panic eased and the pace of developments in Westminster slowed,” she said.

“Whilst we remain unsure as to exactly how many letters have been submitted to the chairman of the 1922 Committee, the pound was willing to focus on today’s positive political developments.”

Meanwhile the FTSE 100 shed

24 Point fall in the FTSE 100 index in

London yesterday

24.13 points to finish at 7,013.88. The FTSE 250, which comprises more UK-focused companies, dropped another 73 points to 18,589.

In Europe, the French Cac was down 0.06 per cent and the German Dax 0.1 per cent lower.

David Madden, market analyst at CMC Markets UK, said: “Stock markets are in the red as investors are still worried about the political sentiment in the UK and Italy.

“Massive political uncertainty still hangs over Theresa May.

“Political commentators are questioning Mrs May’s ability to sell the withdrawal agreement to her own party, and a failure to do so could lead to a no deal scenario - which has spooked investors. The political fight between Italy and the EU is taking a backseat to Brexit right now, but make no mistake, another round of the eurozone debt crisis could be in the offing.”

RBS was trailing the blue-chip stocks in London after it was dropped from a list of the world’s most important banks.