Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

UPDATE 3-British shares up on China stimulus hopes, all eyes on Brexit deal vote

Published 16/01/2019, 04:10 am
© Reuters.  UPDATE 3-British shares up on China stimulus hopes, all eyes on Brexit deal vote
UK100
-
BAC
-
RKT
-
DGE
-
GSK
-
BDEV
-
PSN
-
VANQ
-
SPT
-
EVOK
-
FTMC
-
FTNMX551030
-
FLYB
-
ENT
-
ISEQ
-
BOOH
-
SPI
-

* FTSE 100 up 0.6 pct; FTSE 250 up 0.1 pct

* Investors await key Brexit deal vote

* Consumer, energy stocks top supports to main index

* Provident Financial sinks after profit alert

* Small-cap Flybe tanks (Adds news items, updates to closing prices)

By Shashwat Awasthi and Muvija M

Jan 15 (Reuters) - Britain's FTSE 100 rose on Tuesday on hopes Beijing will take steps to stabilise a slowing economy, while mid-caps edged up in choppy trade as investors remained cautious ahead of a crunch vote on British Prime Minister Theresa May's Brexit plan.

The FTSE 100 .FTSE closed up 0.6 percent, while the more domestically-exposed FTSE 250 .FTMC wobbled back and forth through the session but ended 0.1 percent higher.

Still, volumes on the UK indexes were below their long-term averages. The neighbouring Irish bourse .ISEQ , a barometer of Brexit fears, fell 0.5 percent.

British lawmakers appeared set to reject May's plan, and a heavy defeat could force her to delay Britain's scheduled departure from the European Union on March 29. It could also open up other options ranging from a second referendum to leaving the EU with no deal.

"Of course, we could get a situation where the vote gets passed, but given the polling numbers that looks about as likely as finding a unicorn," said CMC Markets analyst Michael Hewson.

Raymond James analyst Chris Bailey said "the market is still a slave to Brexit newsflow and clearly multiple future scenarios exist, albeit that a 'soft' or delayed Brexit has become much more likely than the more apocalyptic 'no-deal' scenario."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

A stronger dollar aided more internationally-inclined stocks such as GlaxoSmithKline GSK.L , Diageo DGE.L and Reckitt Benckiser RB.L to be among the top boosts to the FTSE 100, whose members make about 70 percent of their income abroad.

UK stocks remained the least favoured among fund managers, a Bank of America (NYSE:BAC) Merrill Lynch's January fund manager survey found. majors and miners .FTNMX1770 also supported the main index after China signalled more growth-boosting steps and oil prices rose amid supply cuts.

Homebuilders, among the most exposed to Brexit uncertainty, ended in the red, with Barratt BDEV.L dropping 1.8 percent. Britain's second-biggest housebuilder Persimmon PSN.L also fell, despite a bright trading update.

Gambling firms fell after the U.S. Department of Justice hinted at wider restrictions on all gambling on the internet. 888 Holdings 888.L tumbled 7.5 percent and GVC GVC.L was the biggest faller on the main index.

Earnings drove direction among the top mid-cap movers.

Spirent Communications SPT.L surged 14 percent to its highest level in nearly five-and-a-half years after forecasting full-year profits that exceeded expectations.

But profit warnings sent sub-prime lender Provident Financial PFG.L plunging 20 percent to its worst day since August 2017 and Spire Healthcare SPI.L down 12 percent. fashion retailer Boohoo BOOH.L shed 9 percent as investors chose to focus on a lack of forecast for higher profit margins over a hike in full-year sales guidance.

Flybe FLYB.L sank 40 percent on the small-cap index. Britain's biggest domestic airline agreed to sell some assets and got a revised bridge loan in relation to a takeover offer by a consortium.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ UK indexes & GBP since 2016

https://tmsnrt.rs/2RSQykU

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.