FTSE climbs higher on falling pound as 'no deal' fears rise
Source - SMW
The FTSE 100 rallied as the pound reversed sharply after UK Prime Minister Theresa May claimed she was unwilling to compromise with the EU following the rejection of the Chequers plan.
The news prompted fears that a 'no deal' Brexit is more likely, causing sterling to fall 1.4%.
For the blue-chip index, this was good as a weaker pound boosts the relative value of overseas earnings.
At close, the FTSE 100 was up 1.7% at 7,490.
Miners were among the top performers amid expectations China is about to unleash a wave of financial stimulus, which could boost demand for commodities.
Glencore rallied 2.1% to 328.5p and Antofagasta strengthened 4.6% to 897.4p.
On Wall Street, investor optimism over US growth helped the S&P 500 and Dow Jones hit new record highs.
Brent crude oil slipped 0.3% to $78.47 per barrel and copper rallied 3.7% to $2.82 per pound.
LARGE AND MID CAP RISERS AND FALLERS
Takeaway deliveries platform Just Eat dropped 4.8% to 674p on reports heavyweight disruptor Uber is in early talks to buy its rival Deliveroo, investors reacting to the potential competitive threat.
Engineering company Smiths Group slumped 4.4% to £15.20 as weakness in its medical division, which it recently tried to sell, contributed to a 28% fall in annual profit.
Building products supplier SIG advanced 1.1% to 122.4p despite posting a lower-than-expected profit in the first half, after severe winter weather damped construction markets.
Shire said regulators in Japan granted it manufacturing and marketing authorisation for its treatment of hereditary angioedema attacks. The rare disease-focused company's shares gained 1.3% to £45.69.
SMALL CAP RISERS AND FALLERS
Men's suit retailer Moss Bros tumbled 14% to 40p as it swung to a first-half loss, cut its dividend and downgraded its annual guidance, after it suffered from a shortage of stock and wrote down the value of underperforming stores. The company also blamed the World Cup and summer heatwave for weak second quarter trading.
Science and technology consultancy Science Group added 7.9% to 260p on the back of news that it was reviewing a potential sale of the company, after acknowledging the high concentration of its shareholder base made its stock hard to trade.
Restaurant group Tasty, which owns the Wildwood brand, slumped 11.7% to 15p after booking a deeper first-half loss, blamed on sluggish consumer confidence and the distraction of the World Cup.
Advertising group M&C Saatchi posted a 26% increase in first-half profit as it grew earnings in all of its geographic markets apart from the Americas. Its shares gained 3.4% to 390p.
Agriculture and engineering group Carr's rose 2% to 152p after it announced it acquired animal health products producer Animax for up to £8.5m.
Water saving technologies developer Xeros Technology soared 65% to 68.5p on a 10-year contract with Le Farc SA de CV to convert re-tanning operations in Mexico to use Xeros' patented polymer technology.