FTSE set for biggest weekly fall since January

Britain's top share index fell on Friday, and was set for its biggest weekly drop since January, as the pharmaceutical sector came under pressure from political scrutiny in the United States. Britain's FTSE 100 fell 1.3 percent, with the mid-cap FTSE 250 retracing Thursday's strong gains and falling 1.5 percent.
Traders said next Tuesday's US presidential election was weighing on sentiment. Republican Donald Trump has closed the gap on Democrat Hillary Clinton in the polls in recent days, and there is uncertainty in the market over what a Trump presidency would do to the economy. Two US lawmakers on Thursday called for an investigation into whether major pharmaceutical firms colluded to set prices for insulin and other diabetes drugs.
Top FTSE 100 faller was Hikma Pharma, down more than 6 percent as HSBC highlighted the risk that the company would dragged into the inquiry. "It's uncertainty around the election which is knocking sentiment at the moment, but pharmaceuticals will likely feel the heat whichever way it goes," said Jasper Lawler, market analyst at CMC Markets.
"Clinton will probably be harsher on pricing on the sector, but Trump could be quite interventionist as well and take on these populist causes." The FTSE 100 was down 4.2 percent for the week, the biggest weekly slide since January. It has been hindered by political uncertainty domestically as well as in the United States. On Thursday, the FTSE 100 fell sharply after the English High Court ruled that the government would have to go to parliament to start the process of leaving the European Union.
While it is unlikely to halt the process of leaving altogether, analysts said that it could open the government up to greater scrutiny over its plans. Sterling rose on the news, hitting the internationally exposed FTSE 100. Friday's fall was broad-based, with only seven FTSE 100 stocks in positive territory. Paddy Power Betfair was the stand-out gainer, rising as it benefitted from foreign exchange effects as sterling fell after the Brexit referendum, and better synergies from its recent merger.
The merger between Paddy Power and Betfair was completed in February this year. "It seems like the drop in the pound came at just the right time, as the merger is starting to bear fruit, as they're using their higher market share to push both services," CMC's Lawler said.