LONDON MARKETS: FTSE 100 Rises As London Investors Await Crucial Brexit Vote
January 15 2019 - 5:50AM
Dow Jones News
By Emily Horton
London markets were up on Tuesday as investor focus turned to
tonight's crucial parliamentary vote on U.K. Prime Minister Theresa
May's EU withdrawal agreement.
Elsewhere, China announced plans to ramp up support for its
economy, which boosted mining and oil stocks.
How are the markets trading?
The British pound bounced around on Tuesday, briefly pushing to
levels not seen since mid-November.
(http://www.marketwatch.com/story/british-pound-volatile-as-brexit-vote-day-arrives-2019-01-15)
(http://www.marketwatch.com/story/british-pound-volatile-as-brexit-vote-day-arrives-2019-01-15)Sterling
reached highs of $1.2917 during Tuesday's session.
The FTSE 100 , meanwhile, was up 0.2% to 6,867.72, after
finishing down 0.9% on Monday.
What is driving the markets?
The landmark vote over May's divisive agreement for Brexit is
scheduled to take place at 22:30 GMT on Tuesday. Most expect it to
be rejected, with more than 100 Conservative politicians currently
opposed to its terms.
In the event that the deal is voted down, May will have three
days to come up with an alternative for exiting the European Union
on March 29. However, EU leaders have insisted that the deal
already agreed is the only one on offer.
Jeremy Corbyn, the leader of the opposition Labour Party, has
said he would trigger a vote of no confidence in May's government
if the deal is rejected.
In China, government officials have stepped up efforts to spur
economic growth
(http://www.marketwatch.com/story/china-to-ramp-up-efforts-to-support-economy-2019-01-15)
amid signs the country's economic slowdown is deepening. Beijing
intends to improve credit availability for smaller companies,
accelerate infrastructure investment and cut taxes
(http://www.marketwatch.com/story/china-to-slash-taxes-keep-currency-stable-to-offset-slowdown-2019-01-14).
What stocks are active?
Software company Sage Group PLC (SGE.LN) topped the FTSE 100's
gainers, adding around 2%. Retailer Marks & Spencer Group PLC
(MKS.LN) and manufacturer Rolls-Royce Holdings PLC (RR.LN) both
jumped by under 2%.
Heavyweight oil and mining stock gained on the back of China's
announcements: BP (BP.LN) jumped 0.3% and Royal Dutch Shell PLC A
(RDSA.LN) rose by 0.2%, while miner Antofagasta PLC (ANTO.LN) added
0.3%.
Paddy Power Betfair PLC topped the FTSE 100 fallers for the
second day in a row, losing just under 2%.
And despite Persimmon PLC's (PSN.LN) announcement that revenues
had risen by 4%
(http://www.marketwatch.com/story/persimmon-revenue-up-4-profit-ahead-of-views-2019-01-15),
the company's stock dropped by aroubd 2%. Laith Khalaf, senior
analyst at Hargreaves Lansdown said: "Persimmon is still selling
more homes at higher prices, but the rate of growth is slowing.
That is to be expected in a cooling property market and following
on from a pretty good run which has seen the house builder return
prodigious amounts of cash to shareholders."
(END) Dow Jones Newswires
January 15, 2019 05:35 ET (10:35 GMT)
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