Business

FTSE 100 closes down as pound recovers

Traders in London Image copyright AFP

(Close) The FTSE 100 index ended the day down 1.4% to 6,730.43, dragged lower for the second session in a row.

Shares in companies exposed to emerging markets suffered, with Standard Chartered closing down 6.3% and packaging firm Mondi falling 4.7%.

Donald Trump's US election victory has raised worries he could introduce protectionist trade policies.

In the FTSE 250, SIG dived 21.8% as it warned on profits and said its chief executive had left the company.

The building materials firm said it had been affected by softer trading conditions in the UK since the Brexit vote and increased competition.

As a result it has lowered its forecast for full-year profits to between £75m and £80m.

SIG also announced that group chief executive Stuart Mitchell was leaving the company by "mutual agreement" with immediate effect.

On the currency markets, the pound continued its recovery of the past few days, hitting its highest level against the pound since October's flash crash.

Sterling rose 0.3% against the dollar to $1.2593 and was 0.88% higher against the euro at €1.1621.

The pound's recovery has been put down to the news of Donald Trump's election victory, but slightly better-than-expected construction figures also helped sterling.

While official figures showed construction output fell 1.1% in the third quarter, the sector's weakest performance for four years, output managed to rise 0.3% in September.