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Friday 04 November 2016 5:02 pm

At the close: FTSE 100 trembling ahead of US election week

By: Helen Cahill

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By this time next week Donald Trump could be President of the U.S.A.

And the uncertainty has seen the FTSE 100 feel the impact.

It fell by over 1.4 per cent by the close as the election jitters take hold of traders.

Healthcare stocks, which are particularly sensitive to developments in the presidential race, were hit. Hikma Parmaceuticals was the top FTSE 100 faller, down by 6.82 per cent during the day.

Shares in IAG fell after British Airways parent downgraded its 2016 profit forecast – the second time the company has done so since the Brexit vote in June.

By the close, IAG's share price was down by 3.46 per cent.

Paddy Power Betfair became the top FTSE 100 riser after it increased its profit forecast on posting better-than-expected revenues.

Read more: Paddy Power Betfair raises guidance on weak sterling

The pound, however, has put in a sterling performance, clocking up its best week of gains in seven years. It has climbed over 0.5 per cent to $1.2527, peaking at $1.2549.

Jasper Lawler, market analysts at CMC Markets, said: "The FTSE 100 dropped below 6700 to a seven-week low as the British pound climbed a wall of Brexit-worry to a one month high. The timing of, the ‘hardness’ of and whether Britain’s exit from the European Union even happens hangs in the balance after the high court decision [to rule that Parliament must approve triggering of Article 50].

"The US dollar had a jumpy response to a mostly solid non-farm payrolls report. The headline number slightly missed expectations with the US having created 161,000 jobs in October but the other components were all positive. The report has not materially moved the dial on the market expectation of a December rate-rise."

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