FTSE 100 slips to two-week low as pound falls again
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The FTSE 100 closed at its lowest level since the turn of the year on Tuesday as market caution continued. Weakness among oil and commodity stocks weighed on the top index during the session, offsetting notable gains from housebuilders. Housebuilding shares were boosted by a positive update from Persimmon and greater stability over borrowing costs on Tuesday.
The FTSE 100 finished 22.65 points, or 0.28%, lower to end the day at 8,201.54. It marked the lowest closing reading since December 31. It came as the pound also weakened ahead of key December inflation data from the Office for National Statistics on Wednesday, with the currency sliding to its weakest level against the Euro since last September.
The pound was down 0.52% at 1.217 US dollars and down 0.61% at 1.183 euros when London’s markets closed. Elsewhere in Europe, the other major markets staged a slight recovery over the session, amid hopes that President Donald Trump could adopt a more cautious tariff policy than previously expected.
The Cac 40 ended 0.2% higher for the day and the Dax index was up 0.69%. In the US, Wall Street stocks had a positive start to trading after producer price inflation came in softer-than-expected for last month, indicating more interest rate cuts could be on the horizon.
In company news, Persimmon was among the top climbers on the FTSE 100 after the housebuilder said annual profits will be at the top end of forecasts. The positive outlook came as it also said private market house prices had improved over the year, edging up to around £287,150 from £285,774 a year earlier.
