No Brexit deal boost for FTSE 100 as oil, miners drag

Economy 16:35 14.11.2018

Britain's top stock index sank on Wednesday as mining companies and oil majors sold off amid growing anxiety that global growth was slowing.

The FTSE 100 fell 0.5 percent by 1000 GMT, hit by a commodities selloff and nerves over Brexit.

Sterling surged late on Tuesday after Britain and the European Union agreed a draft Brexit proposal, but it weakened on Wednesday as traders prepared for UK Prime Minister Theresa May's showdown with her cabinet.

"Markets are struggling to discount two binary options, a Brexit which is relatively soft and pushed down the road or a dramatic no-deal result," said Edward Park, investment director at Brooks Macdonald.

"Whilst a deal remains the market’s base case, the threat of a no-deal sword of Damocles hangs over UK assets until the start of 2019 at the earliest."

Sterling's overnight volatility jumped to its highest since the 2017 UK general election, Refinitiv data showed.

Figures showing inflation failed to rise as expected in October sent sterling slightly lower, alleviating some of the pressure on the FTSE 100.

Mining companies and oil majors dragged the FTSE down the most. Commodities-related sectors were hit by worries over slowing global growth and excess supply of crude.

Copper miner Antofagasta fell the most, losing 4.7 percent, as copper prices slid on weak China retail sales data.

Rio Tinto, BHP Billiton, Evraz, Anglo American, and Glencore fell 2.5 to 3.6 percent.

Oil majors BP and Shell also tumbled after crude prices plunged 7 percent on Tuesday. The International Energy Agency said global oil supply will outpace demand throughout 2019.

Smiths Group was among a handful of gainers, up 4.6 percent. The British engineer said it planned to spin off its healthcare business to focus on industrial technology, two months after a 7 billion-pound ($9.1 billion) deal to merge it with U.S.-based ICU Medical collapsed.

Micro Focus  shares rose 5.7 percent after Goldman Sachs upgraded it to "buy". The company also said it had bought back 213,400 of its shares as part of a $400 million buyback programme.

Mid-caps fell 0.3 percent.

Debenham shares tumbled 12 percent with analysts at Berenberg pointing to a report some high street suppliers have stopped working with the department store chain. 

Overall, analysts have been downgrading their expectations for UK earnings this results season, and investors say company reports show evidence of growing margin pressure and strain from preparations for Brexit.

"The UK earnings season has again shown the precarious state of the UK retail market which has struggled to pass on cost pressures to consumers," said Brooks Macdonald's Park.

"Exporters who are wrestling with the practicalities of European distribution in the event of a no deal have delayed investment and this has contributed to suppressed earnings expectations for 2019," he added.

Azerbaijan Defense Minister informs NATO chief on situation in Azerbaijan-Armenia conditional border -VIDEO

News line

Azerbaijan weather forecast for March 20
13:13 19.03.2024
Israel, Hamas ready to compromise at Doha talks
13:05 19.03.2024
More than dozen workers trapped in one of Russia's largest gold mines
More than dozen workers trapped in one of Russia's largest gold mines
12:49 19.03.2024
Armenia may face a war if refuses to discuss border issues - Pashinyan
12:22 19.03.2024
North Korea holds firing drill using super-large multiple rocket launchers
North Korea holds firing drill using super-large multiple rocket launchers
11:55 19.03.2024
Fenerbahçe to discuss withdrawing from 'Super Lig'
11:32 19.03.2024
Azerbaijani police found numerous weapons and ammunition in Khankandi
11:08 19.03.2024
US Maritime Administration issues new advisory amid rising maritime threats in Middle East
10:55 19.03.2024
EU looks forward to cooperation with Azerbaijan for successful COP29
10:38 19.03.2024
EU to impose tariffs on Russian grain
10:11 19.03.2024
Embassy of Azerbaijan in France appeals to Azerbaijanis
10:00 19.03.2024
Azerbaijani oil price exceeds $88
Azerbaijani oil price exceeds $88
09:48 19.03.2024
Mehriban Aliyeva makes post on Last Tuesday before Novruz Holiday
09:35 19.03.2024
Pashinyan: Delimitation process between Armenia and Azerbaijan entered practical stage
09:00 19.03.2024
Pakistan restricts foreign travels of ministers, government officials
Pakistan restricts foreign travels of ministers, government officials
20:39 18.03.2024
EU to boost military support fund for Ukraine by EUR 5 bln — Hungarian foreign minister
20:00 18.03.2024
Industrial zones to be created in Azerbaijan’s Zangilan, Jabrayil, and Gubadli
19:16 18.03.2024
Reuters: Only an oil slump can stop Russia
19:00 18.03.2024
Top Hamas operative killed in hospital raid, IDF says
Top Hamas operative killed in hospital raid, IDF says
18:33 18.03.2024
President Ilham Aliyev congratulates people of Azerbaijan on occasion of Novruz holiday - UPDATED
18:00 18.03.2024
Jens Stoltenberg: We fully support Georgia's sovereignty and territorial integrity
Jens Stoltenberg: We fully support Georgia's sovereignty and territorial integrity
17:47 18.03.2024
2 dead, 6 injured in Türkiye factory explosion
2 dead, 6 injured in Türkiye factory explosion
17:28 18.03.2024
Armenia’s anti-Russian policy reaches new level
17:11 18.03.2024
"The Middle Corridor plays a key role for Green Energy" - Expert Ali Pasha
16:45 18.03.2024
Central square of Khankandi named “Victory Square”
16:22 18.03.2024
President: We demonstrated tremendous heroism during the II Karabakh War and the anti-terror operation
16:16 18.03.2024
Nobel Peace Prize Laureate Muhammad Yunus visited IEPF - PHOTOS - VIDEO
16:00 18.03.2024
Historic opportunity emerged to advance the Azerbaijani-Armenian peace agenda - FM Bayramov
15:21 18.03.2024
Bayramov and Stoltenberg discuss normalization process between Azerbaijan and Armenia
15:03 18.03.2024
Azerbaijan Defense Minister informs NATO chief on situation in Azerbaijan-Armenia conditional border -VIDEO
14:58 18.03.2024
Stoltenberg's visit to the Caucasus: "NATO is in panic" - OPİNİON
14:29 18.03.2024
Hikmat Hajiyev holds discussions for upcoming COP29 with Chinese Vice FM
Hikmat Hajiyev holds discussions for upcoming COP29 with Chinese Vice FM
14:00 18.03.2024
Stoltenberg concludes his official visit to Azerbaijan
13:42 18.03.2024
Geomagnetic storm expected on March 20
13:33 18.03.2024
Mbappe celebrates his 250th goal in PSG
Mbappe celebrates his 250th goal in PSG
13:19 18.03.2024
President Ilham Aliyev makes a phone call to Vladimir Putin
13:00 18.03.2024
President Ilham Aliyev lit Novruz bonfire in Khankandi and congratulated Azerbaijani people
12:34 18.03.2024
Foreign students attacked in India over Ramadan prayers
12:30 18.03.2024
Spring comes to Northern Hemisphere
Spring comes to Northern Hemisphere
12:17 18.03.2024
Why does Azerbaijan matter to the European Union? - OPINION
12:00 18.03.2024
Hamısı