LONDON, Dec 5 — Britain’s top share index lagged other European markets today, dragged down by dollar earners as sterling continued to march higher amid growing expectation that next week’s general election will not result in a hung parliament.
Sterling rallied to a 2-1/2 year peak against the euro and a seven-month high against the dollar.
A stronger pound weighs on the overseas earnings of multinationals such as HSBC, Unilever as well as mining companies.
The blue-chip FTSE 100 index was down 0.1 per cent lower by 0950 GMT while the more domestically focused mid-cap index, the FTSE 250, was flat.
The euro zone’s STOXX 50E benchmark was up 0.2 per cent.
“The pound became Thursday’s focus, one week away from the UK’s general election,” said Spreadex analyst Connor Campbell.
The best performer among blue chips was Burberry. Like much of the European luxury sector, Burberry was boosted by a report that French group Kering had expressed interest in a potential takeover of Italy’s Moncler.
The M&A speculation comes hard on the heels of LVMH’s US$16 billion (RM66.7 billion) takeover of jeweller Tiffany and has reinforced the appeal of the sector despite US threats to slap tariffs on French luxury products.
Burberry was up 3.5 per cent while European peers Moncler, LVMH, Kering and Hugo Boss also gained, with Moncler’s 9.2 per cent jump leading the pack.
Fund manager M&G Investments, meanwhile, fell more than 4 per cent after it suspended dealing in its flagship UK property fund on Wednesday, citing the impact of Brexit uncertainty.
Another significant mover was online fashion retailer Boohoo, which slid by more than 5 per cent after its founders sold shares worth £142.5 million (RM762.4 million).
Online retailers such as Boohoo have been growing at the expense of traditional shopping groups such as the 135-year-old Marks & Spencer.
Online trading platform IG Group and DS Smith were both down more than 2 per cent after financial results failed to cheer investors. — Reuters
