Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

UPDATE 2-British mid-caps end lower as Brexit talks stall; oil pushes FTSE 100 higher

Published 12/10/2020, 04:48 PM
Updated 12/11/2020, 01:30 AM
© Reuters.
UK100
-
FRAS
-
FTMC
-
OCDO
-

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
* Brexit hangs in the balance ahead of Sunday deadline
* UK GDP growth slows to six-month low in October
* Sportswear group Frasers jumps as core earnings surge
* FTSE 100 up 0.5%, FTSE 250 slips 0.6%

(Updates to close)
By Sagarika Jaisinghani and Shashank Nayar
Dec 10 (Reuters) - London's mid-cap index ended lower on
Thursday as Britain and the European Union extended the deadline
for a Brexit trade deal, while the export-heavy FTSE 100 gained
on a weaker pound and higher oil prices.
The domestically focussed FTSE 250 .FTMC , considered a
barometer for Brexit sentiment, shed 0.6% as Prime Minister
Boris Johnson and the EU's chief executive gave themselves until
Sunday to seal a new pact and avoid a tumultuous Brexit in three
weeks' time. The blue-chip FTSE 100 .FTSE rose 0.5%, as oil prices
jumped to $50 per barrel for the first time since March on
vaccine optimism and as a weaker British pound supported the
export-heavy index. GBP/ [O/R}
Oil majors BP BP.l and Royal Dutch Shell RDSa.L were
among the top gainers on the index.
“Brexit developments are affecting UK's economic outlook
with most institutional investors refraining from increasing
their exposure towards British equities," said Emma Wall, head
of investment analysis at Hargreaves Lansdown.
"Although we see optimism among retail investors as they
continue to consider positive vaccine developments as a higher
driver.”
A raft of stimulus measures coupled with vaccine optimism
has helped the FTSE 250 gain nearly 54% from its multi-year lows
in March, but the index is down about 10% as fears of a no-deal
Brexit and spreading COVID-19 infections kept risk sentiment in
check.
The European Union also laid out contingency plans for a
'no-deal' Brexit at the end of the year to minimise disruption
to air traffic and road and rail travel after talks between
British and EU leaders failed to break an impasse. Latest data showed Britain's economic recovery almost ground
to a halt in October, while another report warned the domestic
economy was unlikely to return to its pre-COVID-19 size until
the end of 2022. In company news, Mike Ashley's sportswear group Frasers
FRAS.L jumped 12.9% after reporting a 25% rise in first-half
core earnings.
Online supermarket Ocado Group OCDO.L fell 7.2% even as it
raised its core earnings forecast for 2019-20 for the second
time in two months.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.