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FTSE Weak On Brexit, Global Growth Worries

U.K. shares are exhibiting weakness on Wednesday as investor sentiment continues to remain negative due to lingering worries about global growth and uncertainty about Brexit.

Markets across the globe had tumbled on Tuesday after the International Monetary Fund cut its global growth forecasts for 2019 and 2020, citing the threat of a trade war, stalled Brexit talks and slowing Chinese growth.

The benchmark FTSE 100 is down 29.40 points, or 0.43%, at 6,872.99. On Tuesday, the index ended nearly 1% down.

Ferguson is down 2.2%. Smiths Group, Reckitt Benckiser, British American Tobacco, Centrica, Royal Dutch Shell, InterContinental and Standard Chartered are lower by 1 to 1.6%.

Among the gainers, EasyJet is rising 3.5%, extending gains from previous session. The stock rose sharply on Tuesday after the company maintained its full-year outlook despite drone disruption at Gatwich airport in December.

Morrison Supermarkets is gaining 2.2% and Hammerson is up 1.7%. IAG, Tesco, Kingfisher, J Sainsbury, Marks & Spencer, Seven Trent and Vodafone Group are higher by 1 to 1.6%.

On the Brexit front, former U.K. Chancellor George Osborne reportedly thinks that a delay to Brexit will be the most likely outcome following the political deadlock. Osborne was among those who campaigned for U.K. to remain part of the European Union.

Osborne, who is currently the editor of 'The Evening Standard,' has warned of the possibility of leaving the EU without a deal on March 29. He is quoted as saying to the BBC that "gun is held to the British economy's head."

Osborne, speaking at the World Economic Forum in Davos, Switzerland, said a delay to the official exit date would give the country the space to explore viable alternatives to Theresa May's withdrawal agreement. He also reportedly spoke of the possibility of exploring a second referendum.

May, who has ruled out a second referendum, is scheduled to present an updated plan for Brexit to parliament on January 29.

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