London midday: Stocks fall on growing Brexit fears

UK equities dipped on Friday as worries about Brexit grew after data showed a decline in consumer confidence and after two legal challenges on the EU referendum were rejected.

At midday, the FTSE 100 fell 0.03% to 6,984.67 while the pound slid 0.30% against the dollar to 0.30% to $1.2127.

A survey from market research firm GfK showed sentiment dropped in October for the first time since the Brexit vote on 23 June, with its consumer confidence index down to -3 from -1 the month before.

Meanwhile, the YouGov/Cebr consumer confidence index fell to 109.3 in October, marking its lowest level since 2013 apart from the drop in July after the UK voted to leave the EU.

Pantheon Macroeconomics economist Samuel Tombs said rising inflation and the perception that “hard Brexit” risks have increased are beginning to dampen sentiment.

“Going forward, we continue to think that consumer confidence will embark on a downward path as inflation continues to rise and job prospects worsen,” he said.

Adding to worries about Brexit, two legal challenges on the vote have been thrown out of court in Northern Ireland. A judge at the High Court in Belfast ruled there was nothing in the 1998 Good Friday Agreement which meant the government could not trigger Article 50.

Across the Atlantic, traders are looking ahead to US economic growth data, due at 1330 BST. Economists estimate gross domestic product grew an annualised 2.5% in the third quarter following a 1.4% increase in the second quarter.

Meanwhile, oil prices drifted lower on doubts of an OPEC deal to curb production at a meeting next month. Brent crude fell 0.13% to $50.39 per barrel and West Texas Intermediate slid 0.34% to $49.55 per barrel at 1142 BST.

In corporate news, Royal Bank of Scotland reversed earlier gains after the bank reported a loss attributable to shareholders of £469m compared to a profit of £940m in the same period last year as it took a hit from litigation and restructuring costs. However, adjusted operating profit came in at £1.3bn, up from £1.1bn the year before and beating company-compiled consensus of £734m.

International Consolidated Airlines Group flew higher despite reporting a drop in third quarter operating profit before exceptional items to €1.21bn from €1.25bn a year ago and cutting its earnings outlook. Shares were lower on Thursday after Societe Generale downgraded its stance on the British Airways and Iberia parent to ‘hold’ from ‘buy’ and cut the price target to 420p from 500p.

Tullow Oil advanced after receiving a $345m loan to cover April's scheduled amortisation and ensure the company has enough headroom throughout 2017 as it refinances its bank facilities.

Shares in chemicals company Elementis gained after it said sales for speciality products rose in the third quarter and full year earnings are anticipated to be in line with market expectations.

Amec Foster Wheeler’s shares continued to drop a day after raising its forecast for year-end net debt and said it expected further slowing in oil and gas and solar activity in 2017.

Berendsen slumped a day after the textile service company said continued operational issues resulted in higher costs in the quarter ended 30 September.

Market Movers

FTSE 100 (UKX) 6,984.67 -0.03%
FTSE 250 (MCX) 17,554.34 -0.15%
techMARK (TASX) 3,389.78 -0.27%

FTSE 100 - Risers

International Consolidated Airlines Group SA (CDI) (IAG) 435.60p 5.34%
Sainsbury (J) (SBRY) 251.10p 2.91%
Whitbread (WTB) 3,627.00p 2.72%
Next (NXT) 4,936.00p 2.70%
Pearson (PSON) 763.00p 2.69%
Barratt Developments (BDEV) 449.70p 2.46%
Taylor Wimpey (TW.) 141.90p 2.16%
Persimmon (PSN) 1,695.00p 1.44%
easyJet (EZJ) 934.00p 1.41%
Imperial Brands (IMB) 3,992.50p 1.38%

FTSE 100 - Fallers

Dixons Carphone (DC.) 309.00p -2.06%
Royal Bank of Scotland Group (RBS) 193.20p -1.63%
Admiral Group (ADM) 1,900.00p -1.30%
BP (BP.) 487.85p -1.14%
HSBC Holdings (HSBA) 620.50p -1.12%
Capita (CPI) 587.00p -1.10%
Intu Properties (INTU) 278.50p -1.03%
Shire Plc (SHP) 4,900.00p -1.01%
DCC (DCC) 6,610.00p -0.90%
RSA Insurance Group (RSA) 551.00p -0.81%

FTSE 250 - Risers

Elementis (ELM) 234.80p 9.46%
Electrocomponents (ECM) 382.20p 4.94%
Hastings Group Holdings (HSTG) 218.90p 4.24%
Just Eat (JE.) 520.00p 2.67%
Galliford Try (GFRD) 1,241.00p 2.56%
Redrow (RDW) 380.50p 2.18%
Carillion (CLLN) 252.90p 1.81%
Inchcape (INCH) 655.00p 1.79%
Sophos Group (SOPH) 228.35p 1.53%
Ladbrokes (LAD) 133.60p 1.52%

FTSE 250 - Fallers

Unite Group (UTG) 560.00p -3.78%
Berendsen (BRSN) 991.50p -3.74%
Amec Foster Wheeler (AMFW) 450.60p -3.28%
Softcat (SCT) 321.40p -3.02%
Entertainment One Limited (ETO) 229.30p -2.92%
Hunting (HTG) 495.30p -2.88%
Zoopla Property Group (ZPLA) 297.80p -2.62%
CLS Holdings (CLI) 1,535.00p -2.42%
Safestore Holdings (SAFE) 361.20p -2.35%
Lancashire Holdings Limited (LRE) 691.00p -2.33%