FTSE 100 slips to around 2-week low as pound rises

European Stock Markets

British blue-chip stocks fell Monday, pulling the FTSE 100 toward a two-week low, as utilities shares slipped and a rise in the pound put some pressure on exporters.

 A collapse in talks between German political parties aimed at forming a governing coalition sent ripples through markets, as it put German Chancellor Angela Merkel’s leadership in doubt and raised the prospect of a snap election.

Meanwhile, energy stocks were mixed as the parent company of British Gas said it will make changes to the tariffs it offers to customers. 

The FTSE 100 index UK:UKX -0.14% lost 0.4% to 7,351.18, with only the consumer services sector printing a small rise. The basic materials and financial groups were losing the most.

The London benchmark was on track for its seventh loss in eight sessions. On Friday, it slipped 0.1% and logged a weekly decline of 0.7%.

The pound GBPUSD +0.33% traded at $1.3246, up from $1.3216 late Friday in New York. Against the euro, sterling GBPEUR +0.34%  bought €1.1249, pulling back from €1.1207 late Friday.

The pound GBPUSD +0.33%  was higher across the board. The move came after Chancellor Philip Hammond signaled the U.K. is prepared to increase the payment by the U.K. to leave the European Union — the so-called divorce bill. Media reports said the payment could be raised by by €20 billion to more than €40 billion, closing in on the €60 billion the EU has asked for.

Centrica PLC UK:CNA +0.18%   was fractionally higher after the British Gas parent said it’s planning withdraw its standard variable tariff for new customers and encourage existing customers to move to other products.

National Grid PLC UK:NG -0.26%  shares slipped 0.2%. SSE PLC UK:SSE -0.52% was down 0.5% after energy regulator Ofgem said it will investigate the company’s “cheapest tariff” messaging in its annual statements.

Mediclinic International PLC UK:MDC -3.24%  fell 3.3% after the private hospital company said it’s ditching plans to make an offer to buy Spire Healthcare Group PLC UK:SPI -5.64%  . Spire shares fell 5.3% on the mid-cap FTSE 250 index.

Glencore PLC  UK:GLEN -0.58%   GLCNF +0.56%  shed 0.9% after the mining company said it has nominated three directors to Katanga Mining Ltd. CA:KAT +0.80%  to oversee efforts to strengthen corporate governance at the copper mine.