UKX FTSE 100 Index

By Steve Goldstein, MarketWatch

The path of least resistance was higher on Wednesday as British stocks rallied with little macroeconomic or corporate news.

Up in three of the last four sessions, the U.K. FTSE 100 jumped 1.03% to 7198.14, with only six components losing ground.

British Prime Minister Boris Johnson was traveling to meet German Chancellor Angela Merkel, with little expectation of a breakthrough that would avoid a hard Brexit on Oct. 31. The weakening of the British pound since Johnson has led the government has been a tailwind for U.K. stocks. The pound traded at $1.2133 vs. $1.2171 on Tuesday.

Italian politics also were in focus after the resignation on Tuesday of Prime Minister Giuseppe Conte. Possibilities include a snap election, a coalition between the 5 Star Movement and the Democratic Party, or a reconciliation between the 5 Star Movement and the League. The possibility of a snap election--and the VAT increase of 3 percentage points it would trigger automatically--is a concern.

Markets were awaiting fresh data on U.S. existing home sales, and, after the European close, the release of minutes from the last Fed meeting.

After a 173-point drop in the Dow Jones Industrial Average on Tuesday, U.S. stock futures were higher.

Focus stocks

OneSavings (OSB.LN) shares fell 6.1% after the bank reported a decline in first-half earnings. Its net interest margin fell and it said it won't be able to produce detailed guidance for the full year as it is merging with Charter Court Financial Services (CCFS.LN).

U.K. engineering company Costain Group (COST.LN) jumped 10% after holding its outlook amid a decline in first-half operating profit. The stock is nonetheless down nearly 50% for the year.

(END) Dow Jones Newswires

August 21, 2019 05:56 ET (09:56 GMT)

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