FTSE relatively stable as Brexit impasse has mixed impact

FTSE relatively stable as Brexit impasse has mixed impact
FILE PHOTO - Traders looks at financial information on computer screens on the IG Index trading floor in London, Britain February 6, 2018. REUTERS/Simon Dawson -
Text size Aa Aa

By Danilo Masoni

MILAN (Reuters) - Britain's top share index was steady on Monday as a deadlock in Brexit talks depressed domestic stocks but helped internationally focussed companies as it weakened the pound.

The FTSE 100 <.FTSE> was down 0.1 percent by 0813 GMT, while the domestically focussed midcap index <.FTMC> fell 0.7 percent, further hit by warnings from ConvaTec and Superdry.

The FTSE outperformed the pan-European STOXX 600 index <.STOXX>, which declined 0.4 percent.

"Thanks to the situation with sterling, the FTSE ended up being one of the better performers," said Connor Campbell, analyst at

The stubborn problem of Britain's land border with Ireland thwarted a drive to clinch a Brexit deal before a European Union summit this week, as negotiators admitted defeat after marathon talks and pressed pause for the coming days.

"Any delay or disagreement only heightens the chances of a no-deal Brexit, hence the pound’s red headache," added Campbell.

Shares in big international firms such as British American Tobacco , Shire and Unilever , as well as oil majors, which tracked rising crude prices, provided the biggest boost to the FTSE.

Shares in precious metal miners Randgold Resources and Fresnillo also rose, up 3.6 and 2.1 percent respectively, as gold prices hit a near 12-week high.

Among companies with bigger exposure to the domestic economy, banks Lloyds and Royal Bank of Scotland fell 1.2 and 0.7 percent respectively, while house builders Derwent and Persimmon dropped by around 1 percent.

Analysts expect a no-deal scenario to lead to a significant downward revision to Britain's economic growth, with sterling likely to fall further under such a scenario.

Among mid-caps, ConvaTec plunged 27 percent after the medical devices maker lowered its expectations for revenues and margins, citing a change in inventory policy by its largest customer in its Infusion Devices business.

Fashion group Superdry warned 2018-19 profit could be as much as 17 percent below current expectations, blaming a hit to sales from unseasonably hot weather and rising foreign exchange costs. Its shares tumbled 17.7 percent.

(Reporting by Danilo Masoni; Editing by Susan Fenton)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.