Election tension drags UK-focussed stocks lower

UK-listed firms with more exposure to political risks edged lower on Wednesday as investors woke up to a growing chance that the upcoming election may result in another hung parliament, while retailer JD Sports slid 7% after top investor cut stake.

The mid-cap bourse, which makes half of its earnings from Britain, was down 0.1% by 0807 GMT. The index has gained about 3% and outperformed blue chips since lawmakers voted in favor of an election to break the deadlock over Brexit. However, some of those prospects dimmed after pollsters YouGov predicted a 28-seat Conservative margin of victory versus 68 just two weeks ago.

The exporter-heavy FTSE 100 gained on the weakness in sterling to add 0.5%, outshining its European counterpart. Still, stocks considered most vulnerable to any shocks to the British economy weakened across the board, with falls in blue-chip housebuilders Barratt and Taylor Wimpey, and real estate stocks weighing the most on mid-caps.