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Brexit concerns weigh on FTSE 100

Written by Business World, on 16th Sep 2020. Posted in World

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The FTSE 100 slipped on Wednesday due to concerns of a disorderly Brexit, while shares of The Hut Group surged in the biggest UK initial public offering since 2013.

The e-commerce firm soared as much as 30% on its first day of trading.

The blue-chip FTSE 100 and the mid-cap FTSE 250 were down 0.03% and 0.2%, respectively, with banking and insurers' stocks being among the biggest decliners.

"We have seen heavy outflows, with most investors of UK stocks in aversion mode over fears of a no-deal Brexit," said Keith Temperton, a sales trader at Forte Securities.

Fears of a no-deal Brexit have returned to the forefront following Prime Minister Boris Johnson's proposal to breach the divorce treaty with the European Union, raising the risk of another blow to a domestic economy already grappling with fallout from the COVID-19 pandemic.

Investors are now looking to the Bank of England's policy meeting on Thursday for signs of more stimulus, a day after the U.S. Federal Reserve is expected to wrap up its meeting with a renewed pledge to keep interest rates low for long.

British homebuilder Redrow fell 1.9% after reporting a plunge in annual profit, while promising to renew dividend payouts next year as it halts investments in London and focuses on its Heritage Collection homes.

Construction firm Galliford Try Holdings rose 9.8% after it said it expects to return to profitability in fiscal 2021 as site activity resumes and productivity nears normal levels. (Reuters)

Source: www.businessworld.ie

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