Tuesday, 10 September 2019

Steady pound, growth worries pressure FTSE 100

(Reuters) - UK blue-chip shares slipped on Tuesday, as a second set of disappointing data from China this week cemented fears of a slowdown in global economic growth, while gains in the pound amid fading no-deal Brexit worries hit multinational stocks.

The FTSE 100 index .FTSE dipped 0.4%, having suffered its worst day this month in the last session, with equipment rental giant Ashtead (AHT.L) falling 3% after in-line results.

The more domestically-focussed index of midcaps .FTMC was flat by 0705 GMT, supported by a 22% jump in Galliford Try (GFRD.L) after the construction company said it had restarted preliminary talks to sell its residential units to housebuilder Bovis Homes (BVS.L).

Sterling was seen close to a six-week high it hit on Monday after parliament passed a bill blocking a no-deal Brexit, weighing on British American Tobacco (BATS.L) and Diageo (DGE.L) as strength in the local currency meant the value of their U.S. earnings would be lower.

Reporting by Muvija M

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