FTSE 100 falls as Boris Johnson heads out to meet European leader to break Brexit talks deadlock

The FTSE 100 fell today as a gloom settled over share prices amid the Brexit deal talks stalemate.

The index of London’s leading shares fell 14 points to 6542.

Boris Johnson was set to meet EU Commission president Ursula Von Der Leyen to take up negotiations after officials failed to reach agreements on key issues over the level playing field and fish quotas. Some sources were saying talks have not moved in many areas from where they were weeks ago despite the intensity of negotiations.

CMC Markets analyst Michael Hewson said, however: “If the PM thinks a visit to Brussels is worthwhile then that would suggest the doorway to a deal remains open.”

Johnson faces stiff opposition to any compromise from his own backbenchers, while Von Der Leyen has similar pressures on her from numerous states including France.

“Perhaps this is what the choreography of a deal looks like,” said Hewson.

He pointed out that both sides would lose out if no deal is reached. While the UK would be damaged, it is at least able to take its own tax and spending measures and adapt monetary policy, unlike EU states.

Sterling fell heavily during the day yesterday as a result of the ups and downs of the talks before recovering slightly and the currency will continue to be the most volatile asset class as the news breaks.

The FTSE 100 opening had been called down 10 points at 6540 by CMC Markets and down 19.3 at IG Index, with similar subdued starts expected in France and Germany.

Airbnb’s $42 billion pricing on its IPO should keep the bulls excited as the group increased its price range ahead of this week’s float. The group’s bankers increased the range from $44-$50 to $56-$60 a share in a deal that could raise as much as $3.1 billion despite the turmoil ripping through the travel markets this year.

Another US tech float is happening tomorrow. Doordash, the restaurant delivery group, upped its price range last week and could be valued as highly as $35 billion when it floats tomorrow.

Investors eyeing Deliveroo’s planned float, hopefully in London, will be watching closely.