FTSE 100 watch: Political uncertainty pressures Footsie

The FTSE 100 has posted a hefty fall this Wednesday, pressured by political uncertainty both at home and on the other side of the Atlantic. In individual blue-chip movers, J Sainsbury (LON:SBRY) is outperforming the market with investors digesting its trading performance and strategy update.

FTSE 100 drifts lower

As of 12:15 BST, the Footsie had given up 67.35 points to stand 0.92 percent lower at 7,224.08. Political uncertainty in the UK is keeping investors at the sidelines today, following yesterday’s Supreme Court decision that Prime Minister Boris Johnson’s move to suspend parliament had been unlawful. In the US, lawmakers called for an impeachment inquiry into President Donald Trump, with the news further weighing on investor sentiment.

“Calls for resignation grow. But nothing has really changed. The only narrative that counts is that there’s elite out there frustrating Brexit at every turn,” Markets.com analyst Neil Wilson commented, as quoted by Reuters.

Proactive Investors meanwhile quoted Craig Erlam at Oanda as commenting that “while Boris’s defeat in the Supreme Court on Tuesday […] was largely welcomed by markets as it makes delivering no-deal on 31 October that much more challenging, the impeachment announcement against Donald Trump was not so well received”.

Individual movers

Sainsbury’s has been one of the few bright spots on the FTSE 100 today after reporting a rise in overall sales, and announcing plans to close Argos stores and stop mortgage sales at its underperforming banking division. Sainsbury’s shares are changing hands 1.94 percent higher at 217.13p.

Elsewhere in the London market, Halma (LON:HAL) is trading lower even as it reported ‘good progress’ in the period from April 1 to date, and said that all its sectors had delivered organic constant currency revenue growth. The update, however, has failed to inspire investors, instead sending Halma’s share price tumbling 4.03 percent down to 1,893.00p in early afternoon trade.