By Barbara Kollmeyer and Anneken Tappe, MarketWatch

Vodafone flies higher after results

U.K. stocks struggled for gains and ended the session little changed on Tuesday, trailing a stronger performance by European markets as investors grappled with a strong British pound triggered by hopes for a Brexit deal.

How are markets performing?

The U.K.'s FTSE 100 finished the day more or less flat but in positive territory at 7,053.76, thereby snapping a two-day losing streak.

The British pound rebounded from its own sharp selloff Monday, surging as high as $1.3046 at the peak versus $1.2851 late Monday in New York.

What's moving markets?

Stocks slipped as the pound rose--a stronger sterling can weigh on the FTSE 100, as the index's multinational companies generate most of their sales in other currencies. Sterling gained on the back of hopes for a Brexit deal between the U.K. and European Union, spurred by reports that an agreement on the Irish border (http://www.marketwatch.com/story/british-pound-pops-on-report-of-progress-on-key-brexit-sticking-point-2018-11-13)--a major sticking point--was in the works. The pound even extended its gains as Irish broadcaster RTE reported an agreement had been reached (http://www.marketwatch.com/story/british-pound-rallies-as-uk-and-eu-agree-to-avoid-hard-irish-border-report-2018-11-13).

But U.K. politicians responded less than enthusiastically, suggesting that Prime Minister Theresa May would have a hard time steering the deal through parliament, which could mean that he days as leader being numbered, market participants speculate (https://uk.reuters.com/article/britain-eu-duncansmith/governments-days-are-numbered-if-brexit-deal-is-as-reported-iain-duncan-smith-idUKKCN1NI2DJ?il=0).

Read:Currency traders betting on a Brexit deal are having a rough time (http://www.marketwatch.com/story/currency-traders-betting-on-a-brexit-deal-are-having-a-rough-time-2018-11-12)

What stocks are moving?

Major oil companies such as BP PLC (BP.LN) (BP.LN) closed down 2.8%, and Royal Dutch Shell PLC (RDSA.LN) (RDSA.LN) ended 2.2% lower as crude prices fell anew on Tuesday.

Leading the gainers was Vodafone Group PLC (VOD.LN) (VOD.LN), which closed 7.8% higher after the telecom giant said organic earnings rose in the first half (http://www.marketwatch.com/story/vodafone-freezes-dividend-as-it-swings-to-a-loss-2018-11-13) and it set out new cost-savings targets, but it froze the interim dividend while it works to reduce debt.

 

(END) Dow Jones Newswires

November 13, 2018 15:42 ET (20:42 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Feb 2024 to Mar 2024 Click Here for more FTSE 100 Charts.
FTSE 100
Index Chart
From Mar 2023 to Mar 2024 Click Here for more FTSE 100 Charts.