The FTSE 100 closed the day weaker following news Angela Merkel won the German election with a much smaller margin than in previous victories.
Chancellor Angela Merkel has been re-elected for a fourth term, however her situation is weakened as coalition partners SDU decided they would go into opposition forcing Merkel to look to smaller leftist parties to form a government.
Investors were also concern the rise in support for the AFD (Alternative For Germany) party would make it more difficult for the German Chancellor make reforms. The Euro weakened after the results falling as low as 1.185 against the dollar.
The pound continued to strengthen against the euro and the dollar capping gains in the FTSE 100 which closed 0.2% lower at 7,301, down 0.13%.
UK water firm Pennon Group announced that it is meeting expectations for the six months to September in both water and waste business. However, this failed to excite investors as shares in Pennon were up only 0.1% at 793p by the close. Pennon’s half-year results are due to be released at the end of November.
Plastic and Fibre products supplier Essentra got hit pretty hard by Hurricane Maria resulting in the shutdown of two packaging sites in Puerto Rico. Many services were still recovering and the site is unlikely to reopen in the near future. Shares in Essentra finished down 1.25% at 499p having touched the lowest levels since February earlier in the session.
Real estate investment trust Shaftesbury dipped 0.2% to 1010p on a warning that economic uncertainty is hurting demand for larger properties in the UK’s capital.