The FTSE 100 has fallen into negative territory this Thursday, pressured by a rise in sterling, along with a string of companies, whose shares are trading without the attraction of their latest dividend in today’s session. Vodafone (LON:VOD) meanwhile is trading in negative territory despite announcing a partnership deal with Oman.
FTSE 100 dips lower
As of 12:31 BST, the Footsie had given up 47.55 points to stand 0.65 percent lower at 7,263.71. The blue-chip index has been pressured by a rise in the pound, which is weighing on FTSE 100 stocks with international exposure. Sterling has gained ground in today’s session after MPs backed a bill requiring the prime minister to ask the EU for an extension to the Brexit deadline if a deal is not agreed by October 19.
“Removing the immediate threat of a no-deal Brexit has helped the pound recover some of its recent weakness,” UBS analysts said, as quoted by Proactive Investors. Broader market sentiment meanwhile has been supported by prospects for US-China talks next month, set to come amid the ongoing trade dispute between Washington and Beijing.
“It highlights the headline risk that traders must contend with and suggests there is very little by way of a strong trend in the markets right now, just a lot of short-termism and uncertainty,” Markets.com analyst Neil Wilson commented, as quoted by Reuters.
In individual FTSE 100 movers, Vodafone is trading 1.57 percent lower even as it announced a partnership deal with Oman Future Telecommunications which will see it roll out a new mobile network in the Middle Eastern country.
In smaller London-listed movers, Boohoo (LON:BOO) is rallying nearly 14 percent after the company lifted its full-year sales growth guidance.
The FTSE 100 was 0.70 percent lower at 7,260.07 points as of 13:16 BST on Thursday, 05 September 2019.