Spreadex | Nov 30, 2017 08:46
FTSE Struggles On Sterling Gains
Things continued in the same vein as on Wednesday, with the FTSE struggling under the weight of sterling’s rise.
Despite the reported £50 billion Brexit divorce bill breakthrough being just one part of a trio of issues preventing the UK and EU from unlocking trade talks – the others are the Irish border and citizens’ rights – the pound has continued to cheer the signs of progress this Thursday. Cable has risen a further 0.3%, allowing it to cross $1.345 for the first time since the end of September, while against the euro, sterling has climbed 0.4% to a fresh 3 week high.
This, alongside the pre-OPEC meeting jitters of the oil sector, helped drag the FTSE another 0.4% lower. That means the index has shed all of its Royal Dutch Shell (LON:RDSb) -driven growth seen on the Tuesday, its foray above 7400 once again wilting in the face of the pesky pound.
Elsewhere it was a very mixed morning for the pub sector, with both Greene King (LON:GNK) and Marston’s (LON:MARS) reporting. The former quickly became one of the day’s worst performers, sinking 6% to a fresh 5 and a half year nadir after higher costs forced its first half pre-tax profit 8% lower to 127.9 million.
The reaction to Greene King’s interim results was likely made worse by the comparatively perky state of rival Marston’s own annual report. The Hobgoblin-brewer revealed a 2.9% rise in underlying pre-tax profit to £100.1 million and a 9.5% surge in underlying revenue, aided by the recent acquisition of the Charles Wells Beer Business. This helped send Marston’s more than 10% higher, lifting it from its recent lows to a £1.15-crossing 2 month peak.
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Written By: Spreadex
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