The U.K.’s main equity bourse on Thursday ended lower for a second straight session, as investors kept a close eye on the outcome of tense negotiations between Britain and the European Union over the country’s exit from the bloc.
The U.K.’s FTSE 100 UKX, -0.39% finished 0.4% lower at 7,026.99, after declining 0.1% on Wednesday.
The British pound GBPUSD, -0.5872% was at $1.3053, below $1.3114 seen late Wednesday in New York. Against the euro GBPEUR, -0.3069% the pound weakened, changing hands at £0.8787, versus £0.8769 on Wednesday.
Traders were following reports that U.K. Prime Minister Theresa May was considering a longer transition period within the EU as Britain attempts to break an impasse in talks to forge a new relationship with Europe’s trade bloc.
What are strategists saying?
“In London, the FTSE 100 continues to post small moves between [7,000 and 7,065]. This lack of clear direction is mostly due to the deadlocked Brexit negotiations, an environment in which traders remain cautious to avoid getting burnt,” wrote Pierre Veyret, technical analyst at ActivTrades in a Thursday research note.
Which data were in focus?
U.K. retail sales fell in September, a sign British consumers are paring back spending after a strong summer for retailers. The Office for National Statistics said Thursday that retail sales declined 0.8% on the month in September, reflecting a drop in spending at food stores, department stores and online.
Stocks to watch
Unilever PLC’s stock ULVR, -0.93% closed lower by 0.9% on Thursday even as the maker of Breyers ice cream and Dove shampoo sold more products at higher prices, helping it deliver stronger third-quarter revenue growth.
Among the leading gainers, shares of publishing giant Pearson PLC PSON, +3.78% finished higher by 3.8%, while those for building-materials company CRH PLC CRH, -4.10% ended sharply lower to lead losers, off 4.1%.
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