Export-heavy FTSE 100 falls as sterling rallies

Author of the article: Reuters Shashwat Chauhan and Bansari Mayur Kamdar Publishing date: Nov 15, 2022  •  15 hours ago  •  2 minute read Join the conversation Britain’s internationally-focused FTSE 100 slipped on Tuesday as a strong pound weighed on export-oriented companies, and a disappointing outlook from Vodafone and weaker-than-expected employment added to losses. The blue-chip…
Export-heavy FTSE 100 falls as sterling rallies

Author of the article:

Reuters

Shashwat Chauhan and Bansari Mayur Kamdar

Publishing date:

Nov 15, 2022  •  15 hours ago  •  2 minute read

Join the conversation

Britain’s internationally-focused FTSE 100 slipped on Tuesday as a strong pound weighed on export-oriented companies, and a disappointing outlook from Vodafone and weaker-than-expected employment added to losses.

The blue-chip FTSE 100 closed 0.2% lower, while the FTSE 250 midcap index declined 0.9%.

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Vodafone shed 7.9% to a two-year low after the mobile phone group cut its full-year free cash flow forecast, reflecting a worsening global macroeconomic climate and higher energy costs.

The pound hit three-month highs against a softer dollar after last month’s U.S. producer inflation rose less than expected, dragging export-oriented companies such as Diageo and British American Tobacco lower.

“Because inflation is rolling over in the United States, it’s leading to a lot of currency strength out of sterling and out of the euro and that’s going to be very important factor in controlling inflation in Europe,” Patrick Armstrong, chief investment officer at Plurimi Wealth, said.

Investors were cautious ahead of Finance Minister Jeremy Hunt’s announcement on Thursday when he is set to raise taxes and cut spending to fix public finances, potentially deepening an expected recession.

“If the government is able to announce measures that will help control inflation without perceiving that they are hurting the economy too much, I think we’re going to see a positive reaction in UK market,” said Daniela Hathorn, senior market analyst at Capital.com.

Data earlier showed Britain’s unemployment rate unexpectedly rose in the three months through September and vacancies fell for the fifth report in a row as employers worried about the outlook for the economy ahead of the government’s budget plan.

Ocado Group dropped 16.8% to the bottom of the FTSE 100 after sharp gains this month. Shares of the online supermarket and technology group have surged over 60% after it entered South Korea through a partnership deal with Lotte Shopping at the start of this month.

Aston Martin slumped 7.0% after Jefferies cut the luxury car maker’s rating to “underperform.” (Reporting by Shashwat Chauhan, Bansari Mayur Kamdar, Shristi Achar A and Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta and Barbara Lewis)

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Swiss propose nuclear waste storage site near German border
Read More

Swiss propose nuclear waste storage site near German border

Author of the article: BERLIN (AP) — Switzerland’s nuclear waste authority has proposed building the country’s permanent waste storage site close to the border with Germany, a decision viewed warily by its northern neighbor. The choice of the Noerdlich Laegern site ends a 14-year search for a preferred location, itself preceded by previous failed attempts.…
Barclays Hits Highest Annual Profit on Record: The London Rush
Read More

Barclays Hits Highest Annual Profit on Record: The London Rush

Author of the article: Bloomberg News Ryan Hesketh Barclays Plc: The bank announced a share buyback of up to one billion pounds after its dealmakers compensated for a slump in trading activity, leading the bank to its highest annual profit on record. The banks’ remuneration committee suspended former CEO Jes Staley’s unvested pay awards pending…