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RPT-UPDATE 1-British blue-chips trail Europe as Brexit deal hopes lift pound

Published 10/09/2019, 05:31 PM
Updated 10/09/2019, 05:40 PM
RPT-UPDATE 1-British blue-chips trail Europe as Brexit deal hopes lift pound
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* FTSE 100 up 0.1%, FTSE 250 down 0.1%
* GVC gains after forecast upgrade
* Just Eat tops blue-chip risers

By Muvija M and Shashwat Awasthi
Oct 9 (Reuters) - London's exporter-laden FTSE 100 lagged
its European peers on Wednesday, as sterling gained on a report
that the EU was ready to make a "major concession" on the Brexit
divorce deal, while Just Eat helped the index hold on to slim
gains.
The blue-chip index .FTSE , whose components make
two-thirds of their earnings abroad, was slightly off the day's
highs but was still up 0.1% by 0858 GMT, while the FTSE 250
.FTMC was down 0.1%.
A report that the European bloc was ready to offer a
concession to the contested Irish backstop plan lifted the
pound, with exporter stocks clinging to gains made earlier in
the session when Brexit sentiment was unclear.
Shares in companies that earn a chunk of their earnings in
the U.S. dollar including GlaxoSmithKline GSK.L and Reckitt
Benckiser RB.L were still offering the most support to the
main index.
Just Eat JE.L climbed 2% to top the FTSE 100 leader-board,
after its Dutch rival Takeaway.com TKWY.AS reported a surge in
quarterly orders. GVC GVC.L outperformed the midcap index with a 3% rise as
the Ladbrokes owner boosted its annual core earnings target for
the second time in three months on robust demand in its betting
shops despite tighter regulation.
That news helped rival William Hill WMH.L gain 1.5%.
Financials .FTNMX8350 , which have been hammered this year
due to the Hong Kong protests and fears of a recession, rose
0.6%.
The sub-index has plunged 6% since the start of 2019,
severely lagging a near 7% rise in the FTSE 100 over the same
period and being the only major sector with year-to-date losses.

The recovery comes ahead of the release of minutes from the
U.S. Federal Reserve's last meeting scheduled later in the day,
which could provide further insight on the extent to which the
world's biggest central bank will venture out to support any
slowdown.
With Sino-U.S. talks set to resume tomorrow and as the
chaotic Brexit process drags on, investor sentiment has been on
the cautious side since the new quarter began.
Those concerns also kept a lid on Wednesday's rise.
"Though a trade war breakthrough seems a distant prospect,
there is always an element of unpredictably where Trump is
concerned," Spreadex analyst Connor Campbell said.
"The next few days, then, are going to be nothing if not
interesting."



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