FTSE 100 drops ahead of Brexit talks, U.S. presidential debate
"It is clear that from a global standpoint the uncertainty from the U.S. elections is a bigger driver for markets as against Brexit right now, with investors continuing to be in a wait-and-see mode until there is clarity on these two factors," said Sophie Huynh, cross asset strategist at SocGen. A raft of stimulus measures had led the FTSE 100's rally from its March lows, but the index was on course for its second monthly decline in five as fresh lockdowns on rising COVID-19 cases and Brexit uncertainties led investors to stay away from riskier assets.
The FTSE 100 fell on Tuesday as worries about a stalling economic recovery and surging COVID-19 cases kept sentiment subdued ahead of the next round of Brexit negotiations, while pub owners slid on the prospect of further lockdowns. With the global mood also subdued by the wait for Tuesday's U.S. presidential debate, European Union negotiators signalled that they are willing to begin work on a joint legal text of a trade agreement with the UK, ahead of trade talks that resume on Tuesday, The Times reported.
The blue-chip FTSE 100 index dropped 0.8% with banking stocks declining the most following strong gains in the previous session. The mid-cap index slipped 0.7% and was on track to record its worst month in five. "It is clear that from a global standpoint the uncertainty from the U.S. elections is a bigger driver for markets as against Brexit right now, with investors continuing to be in a wait-and-see mode until there is clarity on these two factors," said Sophie Huynh, cross asset strategist at SocGen.
A raft of stimulus measures had led the FTSE 100's rally from its March lows, but the index was on course for its second monthly decline in five as fresh lockdowns on rising COVID-19 cases and Brexit uncertainties led investors to stay away from riskier assets. Pub owners fell between 1.7% and 3% on Tuesday after junior skills minister Gillian Keegan said Britain's nightclubs may have to stay shut until a COVID-19 vaccine is developed, with shares of Marstons falling the most.
In company news, Plumbing parts distributor Ferguson rose 4.4% to the top of the FTSE 100 after it restored dividend as cost-reduction measures, including job cuts and branch closures, and resilience in its main U.S. business helped it report a 4.1% rise in annual profit.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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