Business

London shares turn negative on CBI industry survey

London stock brokers (file photo) Image copyright AFP

(Close): London's main share index edged lower on Monday, while other major European markets saw gains.

Shares had been in positive territory until publication of the CBI's latest industrial trends survey that showed Brexit hitting business confidence.

By the close, the FTSE 100 was down 20 points, or 0.3%, at 6,710.13.

The pound gained ground, rising 0.12% against the dollar to $1.3127, but was just 0.11% higher against the euro at €1.1963.

The CBI's monthly total order book balance from its monthly industrial trends survey fell to minus 4 in July from minus 2, while a measure of output over the next three months fell to 6 in July from 23 in June.

Quarterly business optimism balance plummeted to minus 47 from minus 5, the lowest since January 2009, during the depths of the financial crisis.

Rain Newton-Smith, CBI chief economist, said: "It's clear that a cloud of uncertainty is hovering over industry, post-Brexit. We see this in weak expectations for new orders, a sharp fall in optimism and a scaling back of investment plans."