Business

FTSE 100 rallies but EasyJet shares slip

Trader watching monitor Image copyright AFP

The UK market was closed higher but shares in EasyJet fell about 6% despite the airline raising its estimate for full-year profits.

The carrier said it now expected to report profits of between £380m and £420m, although that is still below last year's figure of £495m.

Analysts at Liberum said the update was "good news, but not good enough".

EasyJet was the biggest faller on the FTSE 100, although the index was up 56.96 points at 7487.87 at the close.

In the FTSE 250 index, Sports Direct shares jumped 11.44%, despite the retailer reporting a near-60% fall in full-year profits.

However, the company said it was optimistic about its outlook, and added that its new format stores, which are an attempt to go more upmarket, were trading well.

Shares in Moneysupermarket fell 3.69% after the price comparison website said its full-year operating profit was set to come in at the lower end of expectations.

The company said fewer people had been switching between energy providers because of a lack of "blockbuster" deals from providers.

On the currency markets, the pound fell back below the $1.30 level, dropping 0.06% against the dollar to $1.2966. Sterling was 0.05% lower against the euro at 1.1147 euros.

"Sterling fell as it appeared there has been no real progress on Brexit talks," said Neil Wilson, senior market analyst at ETX Capital.

At the end of the second round of negotiations in Brussels, the EU's chief negotiator, Michel Barnier, said there had been areas of agreement but there remained "fundamental" differences over the issue of citizens' rights.

The Brexit Secretary, David Davis, said the talks had been "constructive".