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Latest Share Chat

Britain's FTSE falls after British government loses Brexit ruling

Thu, 03rd Nov 2016 10:53

(ADVISORY- Follow European and UK stock markets in real time onthe Reuters Live Markets blog on Eikon, see cpurl://apps.cp./cms/?pageId=livemarkets)

* FTSE 100 down 0.3 pct

* Mining stocks among biggest fallers

* Mid-caps rally, led by Inmarsat

By Kit Rees

LONDON, Nov 3 (Reuters) - UK shares fell on Thursday inchoppy trade, dropping after the British government lost a courtcase on how to trigger the Brexit process, which sent sterlinghigher.

The blue chip FTSE 100 index was down 0.3 percent at6,825.38 points by 1032 GMT, lagging the broader European marketwhich was broadly positive.

The blue chip index turned negative after England's HighCourt ruled that Britain's government requires parliament'sapproval to trigger the UK's exit from the European Union, withsterling rising on the news.

"With this court ruling regarding Brexit ... sterling willrally, dollar earners will come under a lot of pressure," ZegChoudhry, managing director at LONTRAD, said.

"We think the market's going to start unwinding a little bithere and the potential for the market to fall reasonably sharplyhas increased. We were only doing a technical bounce todayanyway - there was no reason to buy this market in front of theU.S. election, so this has given another down draft."

The FTSE 100 has rallied 7.6 percent since the UK voted toleave the European Union in June, driven by gains among itsinternational, dollar-earning firms which get anaccountancy-related boost from a drop in sterling.

Mining companies were the biggest fallers, with gold minerRandgold Resources dropping more than 5 percent afterits update and pulling peer Fresnillo down 3 percent aswell.

Dixons Carphone, Marks and Spencer andeasyJet were among the top gainers, with Britishsupermarket stocks in focus after Morrison rose 2.3percent after a well-received update in which it reported afourth consecutive quarter of underlying sales growth. PeerSainsbury also rose, up 3.6 percent.

"Now things are starting to pick up, we're entering holidayseason. I think (Morrison's) have had a tough time along with alot scare over Brexit ... I think a lot of people will be buyinginto these ahead of Christmas," John Moore, trader at BerkeleyCapital, said.

The more domestically-focused FTSE 250 index rose1.2 percent, led by an 11.4 percent jump in Inmarsat's shares after the satellite reported its third quarter results. (Reporting by Kit Rees; Editing by Tom Heneghan)

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