Mixed day amidst political uncertainty

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% at 1.283 US dollars and down 0.2% 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.”

West stocks highlighted

Meanwhile the FTSE 100 shed 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% and the German Dax 0.1% 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.”

A barrel of Brent Crude was 0.65% higher at $67.06. But it is still on course for a weekly loss of more than 4%.

The biggest risers on the FTSE 100 were Micro Focus up 53p to 1,463.5p, Paddy Power up 245p to 7,205p, Rio Tinto up 109.5p to 3,910p, and Smurfit Kappa up 48p to 2,302p. The biggest fallers were Melrose down 11.05p to 171.45p, RBS down 7.3p to 216.9p, Royal Mail down 9.4p to 316p and CRH down 56p to 2,140p.