Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Markets

News : Markets
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

FTSE dips as sterling firms on report of potential Brexit delay

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/11/2019 | 01:41pm EDT
FILE PHOTO: A man walks past the London Stock Exchange in the City of London

(Reuters) - British blue-chip shares retreated on Friday, singed by a sterling rally on a newspaper report of cabinet ministers saying that Britain would have to delay its European Union exit.

The report in the Evening Standard pushed sterling up against the dollar and euro, dragging the exporter-heavy FTSE 100 off earlier highs and down 0.4 percent. But the currency fell back after a spokeswoman for British Prime Minister Theresa May ruled out any delay.

Companies that earn mainly U.S. dollars are hit by a stronger pound and were the among the biggest drags on the index. AstraZeneca fell 3.6 percent, while HSBC and GlaxoSmithKline also fell.

But weakness in oil majors BP and Shell on lower crude prices made the sector the biggest drag on the FTSE 100.

The Evening Standard cited unnamed cabinet ministers as saying Brexit looks increasingly likely to be delayed beyond March 29 because of the backlog of legislation that needs to be passed.

Stocks had been boosted earlier by reassurance from U.S. Federal Reserve Chairman Jerome Powell on the pace of further increases to interest rates, with progress in U.S.-China trade talks also providing support.

Mid-caps, which make half of their income at home, rose 0.6 percent to their highest in more than a month.

David Madden, CMC Markets analyst, said any Brexit delay might provide a short-term bounce for the pound but emphasised that the outlook remains highly uncertain.

"All the various options, be it Theresa May’s plan, a second referendum, or leaving the EU without a deal – they all seem to be almost equally unpopular,” he said.

British homebuilders <.FTNMX3720> sensitive to Brexit news, extended early gains to trade up 2.1 percent as the sector index <.FTNMX3720> registered its biggest weekly gain in nearly three years, helped by Bank of America Merrill Lynch upgrading the UK housebuilding sector to neutral.

Taylor Wimpey jumped 4.8 percent to top the FTSE 100 leader board, with Persimmon and Barratt Developments up 4.4 and 2.9 percent respectively.

Adding to worries at home, however, official data showed that Britain's economic growth hit a six-month low in the three months to November as factories suffered from tough global trade conditions ahead of Brexit.

Airline Flybe plummeted 77.1 percent to a record low of 3.8 pence after a heavily discounted 1 pence-per-share buyout offer from a consortium of Virgin Atlantic, Stobart and Cyrus.

Stobart jumped 7.2 percent after the news to top the mid-cap winners.

Retailers continued to upset the markets, with AIM-listed fast-fashion retailer Quiz tanking 32.5 percent to a record low after a revenue warning following disappointing Christmas sales.

Suits specialist Moss Bros also said the period ahead would be "extremely challenging", but its shares firmed as analysts took comfort from strong e-commerce sales.

Debenhams plunged 18.8 percent in high-volume trading. Investors had forced the department store group's CEO off the board and the chairman out of the company on Thursday after another plunge in sales.

UDG Healthcare slumped 7.7 percent to be the biggest mid-cap faller after Jefferies downgraded the stock and said the healthcare services provider's preliminary expectation for the year "does not sound attractive".

(Reporting by Muvija M; Additional reporting by Pushkala Aripaka in Bengaluru; Editing by Raissa Kasolowsky and David Goodman)

By Muvija M

Stocks mentioned in the article
ChangeLast1st jan.
AO WORLD PLC 1.89% 108 Delayed Quote.-17.45%
ASTRAZENECA 1.10% 6420.1516 Delayed Quote.8.43%
BARRATT DEVELOPMENTS 0.33% 615 Delayed Quote.32.58%
BERKELEY 0.00% 3963 Delayed Quote.13.97%
BP -0.82% 554.2 Delayed Quote.12.61%
DEBENHAMS PLC -2.61% 3.0985 Delayed Quote.-40.35%
FLYBE GROUP PLC -4.55% 0.964 Delayed Quote.-94.33%
FTSE 100 INDEX 0.28% 7234.11 End-of-day quote.0.00%
GLAXOSMITHKLINE 1.00% 1514.6 Delayed Quote.0.80%
HSBC HOLDINGS PLC 0.19% 624.9 Delayed Quote.-3.60%
MOSS BROS GROUP PLC -2.47% 22.87 Delayed Quote.-12.99%
PERSIMMON -0.52% 2291 Delayed Quote.19.43%
QUIZ PLC 0.44% 17 Delayed Quote.-49.48%
STOBART GROUP LTD -0.99% 180.1091 Delayed Quote.25.62%
TAYLOR WIMPEY 0.00% 184.9 Delayed Quote.35.78%
UDG HEALTHCARE -0.78% 611.702 Delayed Quote.3.27%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
06:08aLONDON STOCK EXCHANGE : FTSE 100 clings on to gains as weaker pound supports, Inmarsat surges
RE
05:41aEurope's car stocks rally as BAML backs autos as 'contrarian' buy
RE
05:23aGlobal Stocks Weaken Ahead of New Round of U.S.-China Trade Talks
DJ
04:58aEuropean stocks dip after five-day rally
RE
12:13aSOUTHEAST ASIA STOCKS : Most fall on report of possible trade talk friction
RE
03/19ASIA MARKETS: Asian Markets Largely Down As Investors Take Wait-and-see Approach
DJ
03/19WALL STREET STOCK EXCHANGE : Stocks Close Lower as Weak Utilities Offset Strength in Consumer Shares
DJ
03/19Global stocks and oil touch 2019 highs; sterling wobbles, like Brexit
RE
03/19Global stocks and oil touch 2019 highs; sterling wobbles, like Brexit
RE
03/19MARKET SNAPSHOT: Stocks Close Mostly Lower As Trade News Dominates Market Action
DJ
Latest news "Markets"
Advertisement