FTSE 100 hangs in the red following Brexit analysis

FTSE 100 hangs in the red following Brexit analysis

The FTSE 100 has been largely in the red today, currently trading -10.87 points (1615GMT) .

Post-Brexit economy

Stocks opened up 0.29% to 7,037.2 in opening trade but the UK blue-chips fell in afternoon trade after government analysis found that that UK economy would be worse off in every Brexit scenario.

Phillip Hammond revealed today that Theresa May’s suggested deal, which was supported by EU leaders over the weekend, will leave the UK economy “slightly smaller”.

The Chancellor went on to say that the proposed deal was the least harmful of all scenarios.

“If you look at this purely from an economic point of view, yes there will be a cost to leaving the European Union because there will be impediments to our trade,” he said.

Following the news, the FTSE 100 lost nine points to 7,008.

Rain Newton-Smith, the CBI chief economist, said: “Politicians of all parties should speak to businesses in their constituency to hear about the impact a bad Brexit will have on them and their workforce. And the longer a ‘no deal’ scenario remains possible, the more corrosive the impact on jobs and investment plans.”

Telford Homes (LON: TEF)

Shares in housebuilder Telford Homes increased 3.2% to 309.00 in trading today after revealing positive interim results.

The company reported first-half profits to increase to £10.1 million, an increase of 16%. Total revenue grew by 31% to £129.6 million.

Jon Di-Stefano, the chief executive, said: “Telford Homes made pleasing progress during the first half of the financial year, despite an increasingly uncertain economic and political backdrop.”

“Our strategic shift towards purpose-built rental homes sold to institutional investors continues to be beneficial to our risk profile and growth potential whilst also being well timed in terms of the changing requirements of our typical customers in London.”

Amedeo Resources (LON: AMED)

Amedeo Resources was the biggest faller of the day, with shares crashing 77.78% to 2.62p on Wednesday.

Shares plunged after firm proposed cancelling its shares.

“The Directors consider the Cancellation to be in the best interest of Shareholders, after considering, amongst other things, the costs of maintaining trading in the Ordinary Shares on AIM and the limited liquidity in the Ordinary Shares,” said Amedeo in a statement.