FTSE 100 watch: Footsie drifts lower as hopes for delayed Brexit lift sterling

on Feb 26, 2019
Updated: Mar 11, 2020

The UK benchmark index has fallen into negative territory in today’s session, pressured by a rise in sterling amid hopes for a delayed Brexit. Investors are also digesting FTSE 100 company updates, including Fresnillo’s (LON:FRES) results from what the silver miner has described as a ‘challenging year’.

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FTSE 100 drifts lower

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As of 13:20 GMT, the Footsie had given up 61.02 percent to stand 0.85 percent lower at 7,122.72. A rise in the pound is pressuring blue-chips with international exposure after reports suggested that  Brexit could be delayed past the current deadline of March 29.

“Though a delay is simply pushing back the exit date, and doesn’t solve anything itself, markets are taking solace in the fact that such a move would delay a ‘cliff-edge’ no-deal scenario,” Michael Brown, senior analyst at Caxton FX, said, as quoted by Proactive Investors, adding that “confirmation of such a delay would likely strengthen the pound further in the near-term, though political headwinds remain including the opposition Labour Party calling for a 2nd Brexit referendum”.

Footsie risers & fallers

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In individual FTSE 100 movers, Fresnillo’s share price is 8.79 percent worse off at 890.20p after the company reported lower silver production for last year and noted that it was “disappointed not to meet our long-term silver target”.

Persimmon’s (LON:PSN) full-year results and new CEO announcement meanwhile have cheered investors, sending the housebuilder’s shares 4.34 percent higher to 2,454.00p.

Ocado (LON:OCDO) and Marks & Spencer (LON:MKS) are also outperforming the market, having added 9.93 percent and 2.49 percent, respectively, after confirming they were in talks over a joint venture.

The FTSE 100 was 0.84 percent down at 7,123.15 points as of 13:37 GMT on Tuesday, 26 February 2019.

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