London’s markets dropped on Thursday, weighed by persistence strength in the pound and geopolitical headlines that rattled some investors.
How are markets performing?
The FTSE 100 UKX, -0.50% lost 0.6% to 7,063.74, after finishing down 0.3% on Wednesday.
Meanwhile, the pound GBPUSD, -0.1728% remained stable at $1.3304 following a series of government moves that could reduce the chances of Britain leaving the European Union without a deal.
What’s driving the markets?
In Vietnam, President Donald Trump said talks with North Korean leader Kim Jong Un ended without a deal after a disagreement over the lifting of sanctions on the communist country.
“The combination of the lack of progress with North Korea and China will drag on equities and we might have to wait for a new catalyst to renew the bullish start to the year.” Neil Wilson, chief market analysts for Markets.com, told clients in a note.
In the U.K., politicians will be given an opportunity to push for a second referendum on the U.K’s membership of the European trading bloc, with the opposition Labour Party saying it will file a motion by March 12 that calls for a new vote.
Meanwhile, French Prime Minister Emmanuel Macron is reportedly skeptical that U.K. Prime Minister Theresa May will be able to delay Britain’s scheduled exit from the EU on March 29.
Ongoing hostilities between Pakistan and India has also heightened investor worries, though Pakistan has said it would free an Indian fighter pilot captured earlier this week as a “peace gesture”.
What stocks are active?
Roll-Royce Holdings PLC RR, -3.26% fell by 3%, after the British manufacturer swung to a loss and announced it had withdrawn from a competition to power Boeing’s new plane, the Financial Times reported.
RSA Insurance Group PLC RSAB, +0.46% lost almost 4% on the news its profit fell in 2018 after its London market business was hit by large losses.
International Consolidated Air Group SA IAG, -0.43% rose by 2% on the back of a 45% rise in profit in 2018, while budget airline easyJet PLC EZJ, -6.86% dropped by 5%.
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