FTSE 100 slips from two-year high; Tesco drops despite strong outlook

The blue-chip FTSE 100 index slipped 0.1%, with large international companies Diageo and Unilever falling as sterling hit fresh highs against the dollar. Retailers Tesco and Marks & Spencer fell 1.8% and 4.9% respectively, despite nudging up their profit outlook on strong Christmas performance.

London's FTSE 100 slipped on Thursday after climbing to a two-year high in the previous session, as the pound's strength hurt some dollar earners, while retailers Tesco and Marks & Spencer fell despite raising their profit outlook. The blue-chip FTSE 100 index slipped 0.1%, with large international companies Diageo and Unilever falling as sterling hit fresh highs against the dollar.

Retailers Tesco and Marks & Spencer fell 1.8% and 4.9% respectively, despite nudging up their profit outlook on strong Christmas performance. The domestically focussed mid-cap index eased 0.2%, pulled down by a 19% drop in Countryside Properties after its chief executive stepped down and a disappointing trading update.

Online fashion retailer ASOS gained 7.6% despite a downgraded outlook after supply chain constraints and volatile demand limited sales growth.