FTSE ends in red as pound strengthens

The FTSE 100 ended in the red on Tuesday as fears over the standoff between Italy and the EU spooked traders across Europe.

London’s premier index closed down 63.16 points, or 0.89%, at 7,040.68.

David Madden, market analyst at CMC, said: “Stock markets in Europe are largely lower as investors remain nervous about the political standoff between Italy and the EU over the budget.

“The anti-establishment coalition in Rome wants to press ahead and boost spending, and in turn increase the budget deficit. Brussels has already rejected the proposal, and neither side want to back down. Fears persist that this could trigger another round of the eurozone debt crisis. The strained trading relationship between the US and China is souring sentiment too.”

In stocks, Morrisons ended near the bottom of the pile after seeing sales growth slow following the hot summer and World Cup. Group like-for-like sales excluding fuel were up 5.6% in the 13 weeks to November 4.

This was lower than the 6.3% growth in the previous quarter as the football and hot weather encouraged shoppers to stock up on food and drink. Shares closed down 10.05p at 244.5p.

The pound held on to earlier gains as hopes of a Brexit deal remain in sight. The British currency was up 0.25% versus the US dollar at 1.307. Against the euro, sterling was trading 0.2% higher at 1.146. In Europe, Germany’s DAX was down 0.09% and France’s CAC fell 0.51%. A barrel of Brent Crude was trading at 71.4 US dollars, down 1.74%.

Biggest FTSE 100 risers were ABF up 72p at 2,460p, Marks & Spencer up 4.9p at 302.5p, Direct Line up 4.7p at 322.7p and DS Smith up 4.7p at 385.1p. Biggest fallers were BT Group down 11.8p at 251p, Morrisons down 10.05p at 244.5p, CRH down 85p at 2,237p and Glencore down 9.25p at 311.9p.