FTSE slides as robust pound drags on multinationals
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ondon’s most important markets closed within the crimson on Thursday after buying and selling was slowed down by the stronger pound.
Ex-dividend shares, together with Vodafone and Sainsbury’s, additionally pressed down the index of prime London-listed companies, in response to analysts.
The FTSE 100 moved 0.32%, or 24.6 factors, decrease to complete at 7,599.74.
Chris Beauchamp, chief market analyst at IG, mentioned: “Given the swathe of ex-dividend names today it is not surprising that the FTSE 100 continues to struggle.
“A recovery in the pound against the dollar has also hampered the index, putting it on the back foot against other indices that have shown signs of strength.”
Sterling benefited from a cautious greenback to rise larger however impacted buying and selling in UK-listed multinational companies.
The pound was up 0.86% to 1.254 US {dollars} and had gained 0.12% to 1.163 euros at market shut in London.
Elsewhere in Europe, the opposite most important markets had been larger on the finish of buying and selling regardless of the eurozone falling right into a recession after its financial system contracted by 0.1% over the quarter to March, in response to Eurostat.
Germany’s Dax index rose by 0.18% and the Cac 40 closed up 0.27%.
In the US, markets edged larger initially of buying and selling, regardless of shock over the newest rate of interest hike by the Bank of Canada, as weaker US jobless claims strengthened the case for a possible pause to fee rises stateside.
In firm news, shares in transport big FirstGroup shot larger after the agency mentioned it expects to maintain outcomes on observe over the yr forward regardless of ongoing rail strike motion and being stripped of its TransPennine Express franchise by the Government.
The bus and rail agency mentioned it expects “broadly consistent” earnings from its trains enterprise within the yr to subsequent March and for its group outcomes to be in keeping with expectations.
The group completed buying and selling up 16.5p at 135.2p on Thursday.
Housebuilder Crest Nicholson was one of many day’s weakest performers after it reported shrinking gross sales and earnings amid “rapidly” falling client confidence and rising borrowing prices.
The Surrey-based firm mentioned income fell by greater than a fifth to £282.7 million within the six months to the top of April because of the unsure financial backdrop.
Shares had been down 17.8p to 231.6p on the shut.
Investors in building agency Galliford Try had been extra constructive after it declared a 12p-per-share particular dividend for the yr to June, because it is because of obtain a £26 million cost after settling a contract dispute.
Galliford Try shares had been up 14.6p at 200p in consequence.
The value of oil additionally fell, with a barrel of Brent crude falling by 3.4% to 74.30 US {dollars} on the time markets had been closing in London.
The greatest risers on the FTSE 100 had been Hargreaves Lansdown, up 25.8p to 857.6p, Entain, up 18p to 1,297p, Antofagasta, up 14.5p to 1,461.5p, Airtel Africa, up 1.2p to 128p, and BAE Systems, up 8.2p to 938.8p.
The greatest fallers on the FTSE 100 had been Vodafone, down 4.33p to 74.15p, Sainsbury’s, down 10.5p to 267.5p, WPP, down 21.6p to 865p, Johnson Matthey, down 39p to 1,758p, and Endeavour Mining, down 40p to 2,042p.