FTSE 100 watch: Stronger pound and US elections caution weigh on Footsie

Morrisons shares sold off after group’s third-quarter update

FTSE 100 watch: Stronger pound and US elections caution weigh on Footsie

The UK benchmark index has fallen deep into the red this Tuesday, pressured by a rise in the pound and with investors focusing on today’s mid-term elections in the US. In individual movers, Wm Morrison Supermarkets (LON:MRW) has tumbled to the bottom of the FTSE 100 leaderboard after updating investors on its third-quarter performance.

FTSE 100 heads south

As of 12:28 GMT, Britain’s blue-chip index had given up 62.34 points to stand 0.88 percent lower at 7,041.50. Sentiment has been subdued today with investors eyeing today’s elections in the US.

“The Democrats are broadly expected to flip the House of Representatives, whilst the Senate is expected to remain in Republican hands,” said Jasper Lawler of London Capital Group, as quoted by Proactive Investors, adding, however, that “the race in the House is very tight and could swing either way”.

Individual movers

In individual movers, shares in Morrisons have been sold off as the blue-chip supermarket revealed that its sales growth had slowed in the third quarter of its financial year.

“After a party there is usually a hangover and that’s what supermarket Morrisons faces this morning as it reports slowing growth [...] slightly short of analysts’ expectations,” said Russ Mould, investment director at AJ Bell, commented, as quoted by Reuters. Morrisons’ share price is currently 5.83 percent worse off at 239.70p.

Shares in Imperial Brands (LON:IMB) are also underperforming the broader UK market, as the blue-chip group posted a set of mixed results, reporting a rise in full-year revenue while revealing a drop in earnings per share. The group’s stock is 0.63 percent down at 239.70p.

The FTSE 100 was 0.92 percent down at 7,038.83 points as of 12:59 GMT on Tuesday, 06 November 2018.

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