FTSE 100 watch: Footsie falls as Trump’s tax plan disappoints investors

on Apr 27, 2017
Updated: Mar 11, 2020

The UK benchmark index has lost ground in today’s session, with investors digesting US President Donald Trump’s highly-anticipated tax reform plans, as well as a string of corporate updates. Mediclinic (LON:MDC) has climbed to the top of the FTSE 100 leaderboard as Abu Dhabi scrapped a co-payment requirement for treatment at private facilities.

As of 12:31 BST, Britain’s blue-chip index had lost 31.43 points to stand 0.43 percent lower at 7,257.29. Sentiment has been subdued after Trump’s one-page tax plan disappointed investors with little specifics.
“The anti-climactic Trump tax plan continued to take its toll on the markets this Thursday, with the FTSE taking the most damage,” Connor Campbell at Spreadex commented in a note. Closer to home, the European Central Bank left its rates unchanged, in line with expectations.

In individual movers, Mediclinic has gained ground after saying that Abu Dhabi had scrapped the 20-percent co-payment for holders of a medical insurance card when receiving treatment at private healthcare facilities. The blue-chip company owns the country’s private hospital group Al Noor.
“Although we expect little near-term benefit, it adds support to the (long term) investment case so we expect a near-term positive share price reaction on sentiment ahead of more details being disclosed,” James Vane-Tempest, equity analyst at Jefferies, said in a note, as quoted by Reuters. Mediclinic’s share price is currently 16.83 percent better off at 854.00p.
Lloyds Banking Group (LON:LLOY) has been another prominent Footsie riser after reporting that its profits had more than doubled in the first three months of the year. Lloyds’ shares are currently changing hands 2.91 percent higher at 69.37p.
**The FTSE 100 index 0.47 percent down at 7,254.38 points as of 12:48 BST on Thursday, 27 April 2017.**