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UPDATE 2-UK bluechips give up gains as sterling strengthens

Published 09/10/2019, 12:53 AM
UPDATE 2-UK bluechips give up gains as sterling strengthens
UK100
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* FTSE 100 down 0.6%, FTSE 250 down 0.1%
* Multinationals drop as pound gains
* ABF falls after weak trading update
* Shopping centre operator Intu jumps on deal report

(Adds company news items, updates share moves)
By Muvija M and Indranil Sarkar
Sept 9 (Reuters) - London's FTSE 100 fell on Monday as the
pound ploughed ahead after unexpectedly robust economic data and
as no-deal Brexit worries tempered, leaving
internationally-focussed stocks in the dumps.
The blue-chip index .FTSE lost 0.6%, shedding earlier
gains and lagging its European peers, due to steep falls in
pharmaceutical shares AstraZeneca AZN.L , GlaxoSmithKline
GSK.L , and consumer goods giant Unilever ULVR.L .
The FTSE 250 index .FTMC dipped 0.1%, though losses were
limited thanks to a 10.4% surge in Intu Properties INTUP.L
after the Times reported that private equity firm Orion Capital
Managers was looking to buy the shopping centre operator.
Sterling scaled a six-week high as fears of a recession were
kept in check after data showed Britain's economy picked up more
than expected in July despite Brexit uncertainty. However, the local currency handed back some of those gains
after news that John Bercow, Speaker in Britain's House of
Commons, would be standing down from the role. Over three years after Britain voted to leave the European
Union, matters have only gotten more complicated as the process
plays out.
In the latest twist, parliament passed a bill demanding that
Prime Minister Boris Johnson delay Brexit unless he strikes a
new deal, while his office insisted that Brexit would happen on
Oct. 31, "no ifs and buts". NO DEAL OR A NEW REFERENDUM
"An unsettled UK political and economic landscape could be
with us for some time," BlackRock analysts wrote in their weekly
note.
"Six months ago, a negotiated deal looked most likely; now,
the then-extreme outcomes – no-deal or a new referendum – look
to have become more plausible."
Helping contain losses on the main bourse were oil majors
Shell RDSa.L and BP BP.L , both of which eked out near 1%
gains on hopes that Saudi Arabia's new energy minister will
continue to support output cuts. O/R
Elsewhere, Wall Street indexes gained on growing hopes that
central banks will step in with stimulus plans after a data
showed an unexpected fall in China's exports last month, while
another one pointed to a slowdown in Japan's economy in the
second quarter.
The weakness reflected an impact from the prolonged
Sino-U.S. trade war to global economic growth.
The dispute saw a sharp escalation last month when the
United States announced higher tariffs on Chinese goods. That
had dragged the FTSE 100 to its biggest monthly fall so far this
year that month.
On Monday, the index saw some news-related falls, with
Associated British Foods ABF.L losing 2.1% after poor outlook
for its Primark fashion chain and British Airways owner IAG
ICAG.L dropping 1.5% as it cancelled nearly all its flights
due to strikes.

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