LONDON MARKETS: FTSE 100 Tracks Global Stocks Lower; AB Foods, Sage Buck Losses

By Emily Horton

Sage, AB Foods, ITV among big movers

Tracking losses for global stocks, the FTSE 100 fell Thursday, with oil and bank sectors leading decliners, while Sage Group PLC and Primark owner Associated British Foods PLC led the gainers. (SGE.LN)

Politics continues to weigh on the mind of investors. Prime Minister Theresa May survived a no-confidence vote, freeing her to restart her negotiations with the European Union over her rejected Brexit agreement.

What are markets doing?

The U.K.'s FTSE 100 lost 0.8% to 6,807.11, having ended down 0.5% on Wednesday.

The British pound firmed up Thursday, rising to $1.2909 from $1.2878 late Wednesday in New York.

What is driving the market?

Prime Minister May is hoping to find a parliamentary consensus on Brexit that she can take back to Brussels for renegotiation, after her previous withdrawal agreement was voted down by politicians earlier in the week.

Brexit Brief: Prime Minister in search of Plan B after surviving no confidence vote (http://www.marketwatch.com/story/brexit-brief-prime-minister-in-search-of-plan-b-after-surviving-no-confidence-vote-2019-01-17)

However, the PM is likely to stick to the core outline of her failed deal, a strategy Michael Hewson, chief market analyst at CMC Markets UK, compared to "trying to resurrect a corpse".

In the U.S., the government is reportedly investigating China's Huawei Technologies Ltd. for allegedly stealing trade secrets from American companies, the Wall Street Journal reported (http://www.marketwatch.com/story/feds-launch-criminal-probe-into-huawei-over-alleged-trade-theft-2019-01-16). That news has weighed on global equities, with investors concerned it will strain U.S.-China relations and trade talks.

Which stocks were active?

ITV PLC (ITV.LN) was the biggest loser on the FTSE 100, dropping by over 6% after Bank of America Merrill Lynch reportedly said (https://www.bbc.co.uk/news/live/business-46837815) traditional TV viewers are disappearing faster than they expected.

Among other decliners, airline easyJet PLC (EZJ.LN) fell 2.5% and Ashtead Group (AHT.LN) lost almost 2%.

Positive results pushed up a number of UK listed stocks. Software company Sage Group PLC (SGE.LN) led London's gainers, jumping 6%, after posting higher revenue and backing guidance (http://www.marketwatch.com/story/sage-group-revenue-up-76-backs-guidance-2019-01-17). Experian PLC (EXPN.LN) added 1% after reporting a 9% gain in revenues (http://www.marketwatch.com/story/experian-organic-revenue-up-9-2019-01-17), while Primark-owner Associated British Foods PLC (ABF.LN) jumped 5%, after posting a sales rise (http://www.marketwatch.com/story/ab-foods-revenue-up-primark-profit-ahead-2019-01-17).

Banks were softer after Société Générale SA (GLE.FR) warned over revenue, (http://www.marketwatch.com/story/societe-generale-4q-hit-by-challenging-environment-2019-01-17) and shares fell sharply in France. Heavyweight HSBC Holdings PLC (HSBA.LN) (HSBA.LN) shares dropped 0.8%.

Oil majors fell in step with declining crude prices , with Royal Dutch Shell Group PLC (RDSA.LN) (RDSA.LN) dropped 0.8%.

-- Barbara Kollmeyer contributed to this report

(END) Dow Jones Newswires

January 17, 2019 08:40 ET (13:40 GMT)

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