FTSE 100 watch: Footsie slips as investors weigh US tax plans

on Sep 28, 2017
Updated: Mar 11, 2020

The UK benchmark index has slipped into the red in today’s session, weighed down by stronger sterling, and with investors digesting news of a tax plans in the US. In individual movers, Tui Group (LON:TUI) is underperforming the FTSE 100 after posting a pre-closing trading update.

As of 12:31 BST, the blue-chip index had given up 15.99 points to stand 0.22 percent lower at 7,297.52, pressured by a rise in the pound against the dollar. Investors meanwhile have been digesting President Donald Trump’s plan to reform tax.

“It’s good news, but the markets aren’t exactly flying on it because we’ve been burnt before on Trump reforms […] not exactly following through,” Mike van Dulken, head of research at Accendo Markets, told Reuters, referring to the Republicans’ healthcare bill which collapsed again in the Senate earlier this week.

In individual movers shares in Tui have lost ground even as the company reiterated its guidance of at least 10 percent growth in underlying EBITA for the financial year 2016/17. The blue-chip travel operator, however, pointed to the recent hurricanes which affected the group’s operations in the Caribbean and Florida. Tui’s share price is currently 0.63 percent worse off at 1,257.00p.

Imperial Brands (LON:IMB) has been another prominent Footsie faller in today’s session as it also issued a pre-closing trading update.

“While Imperial’s strategy remains eminently sensible, the external environment remains very challenging, with regulatory headwinds intensifying and the shift to Next Generation Products accelerating,” Charlie Huggins, manager of the Hargreaves Lansdown UK Income Shares Fund pointed  out, as quoted by Proactive Investors. Imperial Brands’ shares are changing hands 2.60 percent in the red at 3,219.00p.

The FTSE 100 was 0.22 percent down at 7,297.17 points as of 12:42 BST on Thursday, 28 September 2017.