The FTSE 100 slipped lower by the close on Wednesday as traders digested news MPs had voted in favour of Theresa May's plan to hold a UK General Election on 8 June and oil prices slipped to an 11-month low.
Oil major Royal Dutch Shell (RDSB) was among several resources stocks acting as a drag on the index as it fell 2.3% to £20.76.
FTSE 100 RISERS AND FALLERS
The worst FTSE 100 performer was luxury trench coats seller Burberry (BRBY). The shares cheapened 7.8% to £15.69 despite it reporting 19% second half retail sales growth to £1.27bn. Investors focused on a slowdown in growth in the final quarter, subdued demand in the US and declines in the wholesale and licensing businesses.
Burberry is also seen as a beneficiary of weak sterling and is under pressure as this trend reverses on the election news.
Primark owner Associated British Foods (ABF) firmed 1.3% to £27.53 on a first half earnings beat, driven by Primark and a rebound in sugar profits. Management also raised guidance for the full year and expected to report 'good growth' in operating profit.
In the US, investment bank Morgan Stanley enjoyed a 70% increase in profitability but overall the Dow Jones slipped slightly lower in the first couple of hours of trading.
Asian markets failed to rally as the Nikkei 225 in Japan was flat on Wednesday, while equities in Hong Kong and China fell by up to 0.8%.
SMALL CAP RISERS AND FALLERS
High speed cameras manufacturer Acal (ACL) accelerated 8.5% to 255p as it anticipated that full results will be 'slightly ahead' of expectations. It delivered a stronger performance in the second half and said its forward order book grew to a record year-end high.
Trading improved over the final quarter at women's value fashion retailer Bonmarche (BON). Store like-for-like sales strengthening during February and March and online sales returned to growth.
Shares in the retailer rallied 11.3% as new CEO Helen Connolly reported full year results will be ahead of the mid-point of a previously guided £5m to £7m range.
Investors wanted more from pest control firm Rentokil Initial (RTO) as a 10% rise in ongoing revenue in the first quarter was mainly thanks to acquisitions.
Two new supply agreements from technology solutions provider Altitude (ALT) excited investors as one of the deals will give the group access to the $100bn US print market. The stock jumped 26.7% to 76p on the good news.
Things were looking up for Asa Resource (ASA) following yesterday's shocking corruption revelations that hit its share price hard. The company said that continuing cash flows Freda Rebecca Gold Mine and Bindura Nickel were expected to be adequate for its normal working capital requirements.
Management also reported that the total amount of unaccounted funds associated with the scandal is $4.3m. Shares in the firm were up 50% to 1.58p.
Video game creator Frontier Developments (FDEV) announced profit for its current financial year was expected to beat expectations, causing the stock to level up 8.9% to 332p.
The market was not impressed by European Metals' (EMH) preliminary feasibility study as it became the biggest small cap faller in early trading. Shares in the business dropped 16% to 63.6p.
Turbo Power Systems (TPS) said it was 'highly likely' that it would stop trading on AIM as a major shareholder issued a letter of intent to vote in support of the decision, triggering a 67.4% decline to 0.02p.