LONDON MARKETS: FTSE 100 Ends Virtually Unchanged As Talk Of Imminent Brexit Deal Intensifies
November 13 2018 - 03:57PM
Dow Jones News
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)
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