London midday: Stocks slightly lower as pound gains on Brexit hopes
London stocks were still a little lower by midday on Wednesday, underperforming their European peers as sterling was lifted by news a Brexit deal could be announced later in the day.
The FTSE 100 was down 0.3% at 6,433.93, while the pound was up 0.6% against the dollar at 1.3434 and 0.4% higher versus the euro at 1.1024 after ITV said a Brexit deal was possible after progress in talks on fishing rights.
The broadcaster’s political editor, Robert Peston, tweeted late on Tuesday: "A UK source now says agreement on a UK/EU trade deal is again possible tomorrow.
"Presumably because, says a separate source, there was movement late tonight on access to the 6-12 mile (offshore) zone, ocean fishing and the sanctions regime after the interim period of moving towards new quotas."
The top-flight index tends to be dented by a firmer pound as around 70% of its constituents derive most of their earnings from overseas.
Meanwhile, France agreed to ease UK border restrictions. Although with only truck drivers and French and EU citizens or residents who can show a negative Covid test result allowed enter until at least 6 January, disruption is unlikely to end anytime soon.
CMC Markets analyst David Madden said: "Stock markets in Europe are broadly building on yesterday’s gains, even though the health crisis is still rumbling on and there has yet to be a deal agreed between the UK and the EU. The FTSE 100 is basically flat on the day but that’s because the firmer pound is holding back the index. Continental equity benchmarks and the FTSE 250 are up.
"Fears for the new strain of Covid-19 have cooled for now, but I doubt we have heard the last of the new variant of the virus seeing as it has been identified in several other countries. The US stimulus package is in focus too as President Trump has indicated that he will not sign the current deal. It is understood that Mr Trump would like to see stimulus payments of $2,000, rather than the existing $600 proposed payments. Even though the Trump news is a bump in the road, there is some hope that a deal will eventually be put into place."
In equity markets, Premier Inn owner Whitbread gained following a report in The Times that the company has asked its landlords for a 50% rent reduction for the next three months as hotels and restaurants take a hit form the pandemic.
Engine maker Rolls-Royce and British Airways and Iberia owner IAG were also higher, having fallen sharply at the start of the week.
Shares of Cairn Energy surged after the oil and gas exploration and development company won a long-standing tax dispute with the Indian government over backdated charges and said it will receive $1.2bn in damages, plus interest and costs.
Online supermarket Ocado and Just Eat Takeaway were both in the red.
Market Movers
FTSE 100 (UKX) 6,433.93 -0.30%
FTSE 250 (MCX) 20,037.40 0.43%
techMARK (TASX) 4,050.77 0.06%
FTSE 100 - Risers
Rolls-Royce Holdings (RR.) 114.70p 1.82%
Barratt Developments (BDEV) 659.20p 1.57%
Flutter Entertainment (FLTR) 15,050.00p 1.42%
Informa (INF) 537.40p 1.40%
Whitbread (WTB) 3,056.00p 1.29%
Pershing Square Holdings Ltd NPV (PSH) 2,415.00p 1.26%
Berkeley Group Holdings (The) (BKG) 4,478.00p 1.06%
BT Group (BT.A) 134.85p 1.01%
International Consolidated Airlines Group SA (CDI) (IAG) 153.75p 0.99%
SEGRO (SGRO) 932.80p 0.95%
FTSE 100 - Fallers
HSBC Holdings (HSBA) 375.60p -2.14%
Smith (DS) (SMDS) 371.40p -2.06%
Ocado Group (OCDO) 2,227.00p -1.68%
Johnson Matthey (JMAT) 2,477.00p -1.47%
Standard Chartered (STAN) 456.20p -1.47%
Kingfisher (KGF) 262.40p -1.32%
British American Tobacco (BATS) 2,691.00p -1.19%
Reckitt Benckiser Group (RB.) 6,478.00p -1.19%
Just Eat Takeaway.Com N.V. (CDI) (JET) 8,098.00p -1.17%
Imperial Brands (IMB) 1,523.00p -1.17%
FTSE 250 - Risers
Cairn Energy (CNE) 199.90p 20.49%
Cineworld Group (CINE) 64.00p 4.20%
Shaftesbury (SHB) 556.00p 4.02%
Sirius Real Estate Ltd. (SRE) 93.30p 3.44%
National Express Group (NEX) 239.40p 3.37%
Unite Group (UTG) 1,022.00p 3.13%
Indivior (INDV) 97.25p 2.86%
Hammerson (HMSO) 24.42p 2.82%
Oxford Biomedica (OXB) 971.00p 2.64%
Greggs (GRG) 1,774.00p 2.54%
FTSE 250 - Fallers
Rotork (ROR) 314.00p -2.18%
Hochschild Mining (HOC) 205.20p -1.82%
Ibstock (IBST) 204.00p -1.73%
Energean (ENOG) 676.30p -1.53%
Network International Holdings (NETW) 266.00p -1.48%
Petropavlovsk (POG) 30.80p -1.44%
Plus500 Ltd (DI) (PLUS) 1,458.00p -1.35%
TalkTalk Telecom Group (TALK) 98.70p -1.30%
Micro Focus International (MCRO) 433.10p -1.19%
Vectura Group (VEC) 117.80p -1.17%