LONDON MARKETS: FTSE 100 Defends Gains Into The Close Ahead Of Crucial Brexit Vote
15 Gennaio 2019 - 8:01PM
Dow Jones News
By Anneken Tappe, MarketWatch , Emily Horton
Marks & Spencer announces job cuts, shares pull back
London markets clung to their modest gains on Tuesday, as
investors focused on a crucial parliamentary vote on U.K. Prime
Minister Theresa May's withdrawal agreement from the European
Union.
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 was sharply weaker versus the U.S. dollar,
after earlier hovering near a two-month high. Sterling last bought
$1.2724, compared with $1.2866 late Monday in New York.
The FTSE 100 Index finished Tuesday's session 0.6% higher at
6,895.02, reclaiming some ground lost on Monday.
What is driving the markets?
Market participants were gripped by the impending vote on May's
divisive Brexit agreement.
Many market participants expect the deal to be rejected in the
worst parliamentary defeat for any U.K. prime minister in history
(http://www.marketwatch.com/story/brexit-brief-uk-prime-minister-faces-historic-defeat-in-landmark-vote-2019-01-15),
with more than 100 Conservative politicians currently opposed to
its terms. The vote had initially been scheduled for December, but
was postponed as defeat seemed imminent.
In the event that the deal is voted down on Tuesday, May's
government will have three days to come up with an alternative.
However, EU leaders have insisted that the deal already agreed is
the only one on offer, and Labor Party leader Jeremy Corbyn has
vowed to seek a vote of no-confidence in the government that could
lead to fresh elections if the deal was rejected.
Read:May in last-ditch push for Brexit deal votes -- what the
City of London is saying
(https://www.fnlondon.com/articles/may-in-last-ditch-push-for-brexit-deal-votes-what-the-city-is-saying-20190115)
Elsewhere, Chinese officials said they would step 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, which
helped risk sentiment earlier in the session. 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) was among the big FTSE
100 gainers, ending the day some 2% higher.
Commodity-related stocks rose on the China news. BP
PLC(BP.LN)(BP.LN) finished 0.4% higher, and Royal Dutch Shell PLC
(RDSA.LN) (RDSA.LN) ended 0.9% higher. Miner Antofagasta PLC
(ANTO.LN) added 1.5%.
Retailer Marks & Spencer Group PLC(MKS.LN) ended 0.3% lower
after announcing over 1,000 jobs will go
(http://www.marketwatch.com/story/ms-to-cut-over-1000-jobs-in-store-closures-2019-01-15).
Paddy Power Betfair PLC was among the worst performers during
Tuesday trading for a second day in a row, closing 0.8% lower.
Persimmon PLC(PSN.LN) ended 1.3% lower, despite announcing a 4%
gain in revenues
(http://www.marketwatch.com/story/persimmon-revenue-up-4-profit-ahead-of-views-2019-01-15).
"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," Laith Khalaf, senior analyst at Hargreaves Lansdown,
said.
(END) Dow Jones Newswires
January 15, 2019 13:46 ET (18:46 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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