LONDON MARKETS: FTSE 100 Dips As Pound Rises On News Mueller Subpoenaed Trump Campaign
November 17 2017 - 4:21AM
Dow Jones News
By Sara Sjolin, MarketWatch
Carillion tanks more than 40% after profit warning
U.K. stocks slipped and headed for a second straight weekly loss
on Friday, pushed lower by a stronger pound. Sterling is rising
against the dollar on the back of a report that Donald Trump's
campaign has been ordered to hand over documents in a
Russia-related probe.
What are markets doing: The FTSE 100 index dropped 0.2% to
7,376.90, falling for a sixth session out of the last seven. The
benchmark managed to break a five-day losing run on Thursday to
close 0.2% higher
(http://www.marketwatch.com/story/ftse-100-set-to-break-5-day-losing-run-as-oil-stages-slight-rebound-2017-11-16)
after a round of well-received corporate updates.
For the week, the FTSE 100 was on track for a 0.7% loss, which
would add to a 1.7% decline from last week.
What's driving the markets: Analysts cited the stronger pound as
the culprit behind Friday's weakness for stocks. As 75% of FTSE 100
companies' revenues are generated overseas, a strong pound hurts
earnings when they are converted back into sterling.
The pound bought $1.3232, up from $1.3196 late Thursday in New
York.
"The [dollar] dropped overnight on news that Trump's campaign
was subpoenaed for documents regarding Russia," said analysts at
Accendo Markets in a note.
Special counsel Robert Mueller's team in mid-October issued a
subpoena to more than a dozen officials
(https://www.wsj.com/articles/special-counsel-mueller-issued-subpoena-for-russia-related-documents-from-trump-campaign-officials-1510875492?mod=mktw)
from Donald Trump's campaign, asking them to hand over
Russia-related documents, according to a report in The Wall Street
Journal. Mueller is overseeing an investigation into whether Trump
associates colluded with Russia to meddle in the 2016 presidential
election. Both Moscow and Trump have denied any interference.
Meanwhile, investors continue to track developments in the
Republican tax reform plan in Washington. The focus is now on the
Senate after the House of Representatives passed a sweeping bill to
overhaul the tax code
(http://www.marketwatch.com/story/house-passes-tax-overhaul-as-spotlight-turns-to-senate-2017-11-16)
on Thursday. But the Republicans' proposed legislation has several
steps to go.
Stock movers: Outside the FTSE 100, shares of Carillion PLC
(CLLN.LN) tanked 44% after the embattled construction company
warned that full-year profits will be "materially lower than
current market expectations."
(END) Dow Jones Newswires
November 17, 2017 04:06 ET (09:06 GMT)
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