LONDON MARKETS: FTSE Extends Decline As Pound Trades Flat Amid Brexit Uncertainty
October 18 2018 - 1:21PM
Dow Jones News
By Mark DeCambre, MarketWatch
Pearson shares are among the biggest gainers in the FTSE 100
The U.K.'s main equity bourse on Thursday ended lower for a
second straight session, as investors kept a close eye on the
outcome of tense negotiations between Britain and the European
Union over the country's exit from the bloc.
The U.K.'s FTSE 100 finished 0.4% lower at 7,026.99, after
declining 0.1% on Wednesday.
The British pound was at $1.3053, below $1.3114 seen late
Wednesday in New York. Against the euro , the pound weakened,
changing hands at GBP0.8787, versus GBP0.8769 on Wednesday.
Traders were following reports
(https://www.theguardian.com/politics/2018/oct/17/theresa-may-signals-willingness-to-extend-transition-period)
that U.K. Prime Minister Theresa May was considering a longer
transition period within the EU as Britain attempts to break an
impasse in talks to forge a new relationship with Europe's trade
bloc.
What are strategists saying?
"In London, the FTSE 100 continues to post small moves between
[7,000 and 7,065]. This lack of clear direction is mostly due to
the deadlocked Brexit negotiations, an environment in which traders
remain cautious to avoid getting burnt," wrote Pierre Veyret,
technical analyst at ActivTrades in a Thursday research note.
Which data were in focus?
U.K. retail sales fell in September,
(http://www.marketwatch.com/story/uk-retail-sales-fall-in-september-2018-10-18)
a sign British consumers are paring back spending after a strong
summer for retailers. The Office for National Statistics said
Thursday that retail sales declined 0.8% on the month in September,
reflecting a drop in spending at food stores, department stores and
online.
Stocks to watch
Unilever PLC's stock(ULVR.LN) closed lower by 0.9% on Thursday
even as the maker of Breyers ice cream and Dove shampoo sold more
products at higher prices, helping it deliver stronger
third-quarter revenue growth
(http://www.marketwatch.com/story/unilever-revenue-up-on-better-volumes-pricing-2018-10-18).
Among the leading gainers, shares of publishing giant Pearson
PLC(PSON.LN) finished higher by 3.8%, while those for
building-materials company CRH PLC ended sharply lower to lead
losers, off 4.1%.
(END) Dow Jones Newswires
October 18, 2018 13:06 ET (17:06 GMT)
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