LONDON MARKETS: FTSE Gains Slightly As Pound Trades Flat Amid Brexit Uncertainty
October 18 2018 - 5:09AM
Dow Jones News
By Mark DeCambre, MarketWatch
Royal Mail shares were among the biggest gainers in the FTSE
100
The U.K.'s main equity bourse on Thursday was trading slightly
higher, benefiting partly from lackluster trade in the British
pound amid persistent worries about the outcome of testy
negotiations as Britons attempt to exit from the EU.
The U.K.'s FTSE 100 was gaining 0.3% at 7,070.90, after
finishing Wednesday's session 0.1% lower.
The British poundwas at $1.3113, little changed from $1.3114
seen late Wednesday in New York. Against the euro , the pound
weakened, changing hands at GBP0.8786, versus GBP0.8769 on
Wednesday.
Traders were following reports
(https://www.theguardian.com/politics/2018/oct/17/theresa-may-signals-willingness-to-extend-transition-period)
that U.K. Prime Minister Theresa May was considering a longer
transition period within the EU as Britain attempts to break an
impasse in talks to forge a new relationship with Europe's trade
bloc.
What are strategists saying?
"In London, the FTSE 100 continues to post small moves between
7000.0pts and 7065.0pts. This lack of clear direction is mostly due
to the deadlocked Brexit's negotiations, an environment in which
traders remain cautious to avoid getting burnt," wrote Pierre
Veyret, technical analyst at ActivTrades in a Thursday research
note.
Which data were in focus?
U.K. retail sales fell in September,
(http://www.marketwatch.com/story/uk-retail-sales-fall-in-september-2018-10-18)
a sign British consumers are paring back spending after a strong
summer for retailers. The Office for National Statistics said
Thursday that retail sales declined 0.8% on the month in September,
reflecting a drop in spending at food stores, department stores and
online.
Stocks to watch
Unilever PLC's stock fell (ULVR.LN) on Thursday even as the
maker of Breyers ice cream and Dove shampoo sold more products at
higher prices, helping it deliver stronger third-quarter revenue
growth
(http://www.marketwatch.com/story/unilever-revenue-up-on-better-volumes-pricing-2018-10-18).
Shares of Royal Mail PLC(RMG.LN) were among leading gainers on
the London bourse, up 3%, while those for building-materials
company CRH PLC were trading sharply lower to lead losers, off
5.6%.
(END) Dow Jones Newswires
October 18, 2018 05:54 ET (09:54 GMT)
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