FTSE 100 slides as the pound rallies after Brexit deadline extended

The FTSE 100 fell 0.8% on Friday in response to Sterling making gains on the back of news that Brussels has granted Theresa May a two-week Brexit extension.

The UK mid-market also saw significant decline too, with the FTSE 250 sliding 0.7%.

Sterling rallies after Article 50 extension granted

The pound made gains on Friday after EU leaders approved an extension of Article 50 until April 12, giving UK lawmakers more time to deliberate on how to leave the bloc.

‘It’s clear the EU for now doesn’t want to be seen to force Britain out, but its patience won’t last forever,’ Markets.com analyst Neil Wilson told Reuters.

May will have breathed a sigh of relief after being granted more time to persuade MPs in Westminster to vote for her revised deal, but with nothing materially different to offer UK lawmakers it is likely her plan will fail when it is voted on for a third time.

FTSE 100 fallers

AstraZeneca helped dragged the Footsie lower, with the pharmaceutical company sliding more than 2% on Friday to £63.42.

Meanwhile, British American Tobacco and spirits company Diageo also suffered losses on Friday, sliding more than 2.5% and 1.5% respectively.

However, the worst performer on the UK stock market this week was struggling British department store Debenhams, with the stock losing more than 60% of its value after its management was forced to admit that some of its restructuring options would offer no equity value to shareholders.