London midday: Stocks nudge up as EU leaders agree to take Brexit talks to next phase
London stocks had managed to nudge a touch higher by midday on Friday as EU leaders confirmed they will move on to the second phase of Brexit negotiations, but with worries about the passage of the US tax bill weighing on investors’ minds.
The FTSE 100 was up 0.1% to 7,454.68, while the pound was down 0.3% versus the dollar at 1.3397 and 0.4% weaker against the euro at 1.1357.
The matter to be discussed as early as next week will be the terms of a transition period after the UK leaves in March 2019, which European Commission President Jean-Claude Juncker warned would be a "significantly harder" process.
Markus Huber, a trader at City of London Markets, said the drop in sterling was most likely down to profit taking.
“Obviously this move by the EU has been expected for a couple of days now and therefore pretty much been priced into the GBP, almost a typical buy the rumour sell the fact situation.”
Meanwhile, investors were mulling the possibility that the highly anticipated tax plan being drafted in the US may be on the point of starting to unravel after Republican Florida senator Marco Rubio said on Thursday that he would not vote for the package without changes to some tax credits.
“With only a slim majority it would appear that some senators might be starting to waver on some of the changes being proposed,” said Michael Hewson, chief market analyst at CMC Markets.
In corporate news, Standard Life Aberdeen edged higher after the group's first update since its merger was finalised, with outflows lessening year on year.
Sky and BT were both in the black after reaching a deal to sell their channels on each other’s platforms, while Segro was boosted by an upgrade to ‘buy’ from ‘hold’ at Liberum.
Tritax Big Box edged up after the real estate investment trust agreed terms to extend the maturity on its existing loan facility with Landesbank Hessen-Thüringen Girozentrale.
On the downside, Persimmon retreated after the housebuilder said chairman Nicholas Wrigley will retire following a dispute over an incentive scheme for executive pay.
Aveva slipped as it said its £3bn agreed merger with Schneider Electric is expected to gain final regulatory approval by mid-February, though the industrial software group was disappointed by a UK tax ruling on the deal.
Market Movers
FTSE 100 (UKX) 7,454.68 0.09%
FTSE 250 (MCX) 19,982.68 -0.12%
techMARK (TASX) 3,450.25 -0.50%
FTSE 100 - Risers
TUI AG Reg Shs (DI) (TUI) 1,457.00p 1.67%
Rolls-Royce Holdings (RR.) 834.50p 1.40%
Glencore (GLEN) 362.30p 1.39%
BT Group (BT.A) 277.50p 1.33%
United Utilities Group (UU.) 810.50p 1.31%
Smurfit Kappa Group (SKG) 2,411.00p 1.30%
SEGRO (SGRO) 575.00p 1.23%
Sky (SKY) 1,002.00p 1.21%
Paddy Power Betfair (PPB) 8,630.50p 1.06%
WPP (WPP) 1,366.00p 0.89%
FTSE 100 - Fallers
Mediclinic International (MDC) 599.50p -3.54%
Next (NXT) 4,285.00p -1.38%
Shire Plc (SHP) 3,636.00p -1.33%
Pearson (PSON) 729.00p -1.22%
Royal Bank of Scotland Group (RBS) 274.56p -1.20%
Barclays (BARC) 200.27p -1.20%
NMC Health (NMC) 2,834.60p -1.16%
Ashtead Group (AHT) 1,901.00p -1.09%
Persimmon (PSN) 2,623.74p -1.07%
3i Group (III) 882.00p -1.01%
FTSE 250 - Risers
Vedanta Resources (VED) 710.50p 2.97%
Capital & Counties Properties (CAPC) 274.10p 2.12%
TalkTalk Telecom Group (TALK) 138.70p 1.91%
Hiscox Limited (DI) (HSX) 1,405.00p 1.89%
Hansteen Holdings (HSTN) 130.80p 1.87%
CLS Holdings (CLI) 231.50p 1.71%
Provident Financial (PFG) 822.00p 1.48%
Kaz Minerals (KAZ) 764.50p 1.46%
Capita (CPI) 412.80p 1.40%
Drax Group (DRX) 268.70p 1.32%
FTSE 250 - Fallers
Mitie Group (MTO) 188.00p -5.76%
Halfords Group (HFD) 331.90p -3.91%
Restaurant Group (RTN) 280.69p -3.04%
Serco Group (SRP) 94.75p -3.02%
Vectura Group (VEC) 108.70p -2.95%
Cobham (COB) 120.90p -2.81%
PZ Cussons (PZC) 302.05p -2.72%
Aggreko (AGK) 759.00p -2.69%
Card Factory (CARD) 266.83p -2.55%
Dunelm Group (DNLM) 701.00p -2.03%