FTSE 100 records worst session in 3 weeks on stronger pound

  • 9/9/2021
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Sept 9 (Reuters) - Britain"s export-heavy FTSE 100 ended lower on Thursday weighed by a strengthening pound and concerns over slowing economic growth, while easyJet"s share sale plan sent the British airline to the bottom of the mid-cap index. The blue-chip index (.FTSE) ended down 1.0%, recording its worst session in three weeks with consumer staple and pharmaceutical stocks weighing the most. The domestically focused mid-cap FTSE 250 index (.FTMC) fell 0.2%. The FTSE 100, which jumped around 26% from October lows, is on course to end the week in the red as the rising spread of the Delta variant of coronavirus and supply chain issues raised worries of a slowdown in economic recovery. Summary easyJet slides on discounted rights issue, rejected bid offer Blue-chip index marks worst session in 3 weeks FTSE 100 down 1.0%, FTSE 250 off 0.2% Sept 9 (Reuters) - Britain"s export-heavy FTSE 100 ended lower on Thursday weighed by a strengthening pound and concerns over slowing economic growth, while easyJet"s share sale plan sent the British airline to the bottom of the mid-cap index. The blue-chip index (.FTSE) ended down 1.0%, recording its worst session in three weeks with consumer staple and pharmaceutical stocks weighing the most. The domestically focused mid-cap FTSE 250 index (.FTMC) fell 0.2%. The FTSE 100, which jumped around 26% from October lows, is on course to end the week in the red as the rising spread of the Delta variant of coronavirus and supply chain issues raised worries of a slowdown in economic recovery. "One thing investors hate is tax and taxing a market full of dividend darlings is a body blow for sentiment," said Keith Temperton, sales trader at Forte Securities. "I think that"s the overriding reason for stocks being lower today and that will be a driver for the performance going forward as well." Earlier this week, British Prime Minister Boris Johnson set out plans to raise taxes on shareholder dividends to try to fix a health and social care funding crisis. read more Dollar-earning consumer staples stocks, including Unilever (ULVR.L), British American Tobacco (BATS.L) and Imperial Brands (IMB.L), shed between 1.4% and 1.6% on a stronger pound. read more "And a big negative there is also a pretty strong pound," Temperton said. Meanwhile, the European Central Bank signalled it will only slightly reduce its emergency bond purchases over the coming quarter. read more easyJet (EZJ.L) fell 10.2% after the British airline said it rejected a takeover offer and would raise $1.7 billion from shareholders to fund its pandemic recovery and expand operations. read more Genus (GNS.L) slid 7.6% as Peel Hunt downgraded the livestock genetics firm"s stock to "hold" from "buy" after it missed annual profit estimates.

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