Brexit delay provides boost to sterling

The FTSE 100 touched heights last seen in October yesterday, boosted by a strong performance from online grocer Ocado.

London’s top flight closed the day up 24.81 points, or 0.34%, at 7,324, following global peers higher ahead of the US Federal Reserve’s meeting.

“Major equity benchmarks like the FTSE 100, DAX and CAC 40 have reached fivemonth highs as traders are in risk-on mode,” said David Madden, market analyst at CMC.

Sterling was up 0.3% against the US dollar at 1.328 at the London market close, and had advanced 0.1% versus the euro at 1.169.

Brexit, again, was the dominant theme as Theresa May’s Conservative Government continues to botch Britain’s exit.

“GBP/USD is a little higher on the back of the solid economic indicators from the UK, and there is optimism that Brexit will be postponed. The UK unemployment level dropped to its lowest level since the 1970s,” said Mr Madden.

“There is a growing belief that Article 50 will be extended, and that is helping the pound too.”

In Europe, Germany’s DAX closed up 1.13% and France’s CAC 40 was 0.25% higher.

A barrel of Brent crude was changing hands at 67.4 US dollars, broadly flat.

The biggest risers on the FTSE 100 were Ocado up 61.5p at 1,200p, Informa up 26.6p at 747.8p and Smurfit Kappa up 72p at 2,288p.

Biggest fallers were FEvraz down 24p at 606p, RELX down 26p at 1,646p, Standard Chartered down 7.1p at 610.7p and Rentokil down 3.3p at 347p.