Carillion tanks more than 40% after profit warning
U.K. stocks slipped and headed for a second straight weekly loss on Friday, pushed lower by a stronger pound. Sterling is rising against the dollar on the back of a report that Donald Trump's campaign has been ordered to hand over documents in a Russia-related probe.
Continue Reading Below
What are markets doing: The FTSE 100 index dropped 0.2% to 7,376.90, falling for a sixth session out of the last seven. The benchmark managed to break a five-day losing run on Thursday to close 0.2% higher (http://www.marketwatch.com/story/ftse-100-set-to-break-5-day-losing-run-as-oil-stages-slight-rebound-2017-11-16) after a round of well-received corporate updates.
For the week, the FTSE 100 was on track for a 0.7% loss, which would add to a 1.7% decline from last week.
What's driving the markets: Analysts cited the stronger pound as the culprit behind Friday's weakness for stocks. As 75% of FTSE 100 companies' revenues are generated overseas, a strong pound hurts earnings when they are converted back into sterling.
The pound bought $1.3232, up from $1.3196 late Thursday in New York.
"The [dollar] dropped overnight on news that Trump's campaign was subpoenaed for documents regarding Russia," said analysts at Accendo Markets in a note.
Special counsel Robert Mueller's team in mid-October issued a subpoena to more than a dozen officials (https://www.wsj.com/articles/special-counsel-mueller-issued-subpoena-for-russia-related-documents-from-trump-campaign-officials-1510875492?mod=mktw) from Donald Trump's campaign, asking them to hand over Russia-related documents, according to a report in The Wall Street Journal. Mueller is overseeing an investigation into whether Trump associates colluded with Russia to meddle in the 2016 presidential election. Both Moscow and Trump have denied any interference.
Meanwhile, investors continue to track developments in the Republican tax reform plan in Washington. The focus is now on the Senate after the House of Representatives passed a sweeping bill to overhaul the tax code (http://www.marketwatch.com/story/house-passes-tax-overhaul-as-spotlight-turns-to-senate-2017-11-16) on Thursday. But the Republicans' proposed legislation has several steps to go.
Stock movers: Outside the FTSE 100, shares of Carillion PLC (CLLN.LN) tanked 44% after the embattled construction company warned that full-year profits will be "materially lower than current market expectations."
(END) Dow Jones Newswires
November 17, 2017 04:06 ET (09:06 GMT)