Pound surges after EU hints at Brexit deal
Sterling received a much-needed boost following comments from the European Union’s chief negotiator Michel Barnier suggesting the bloc is ready to offer the UK a bespoke Brexit deal.
The pound jumped almost 1 per cent versus the dollar and euro to $1.300, a three-week high, and €1.111, after Barnier said the EU is “prepared to offer a partnership with Britain such as has never been with any other third country”.
Sterling had been under pressure for much of August as no-deal Brexit fears intensified.
But Neil Wilson, chief market analyst at Markets.com, said: “Barnier’s comments are clearly positive for the Brexit negotiations and indicate that we are about to get some sort of deal before the end of the year.
“The EU is coming around at last, it has strong form on eventually doing a deal that works, but we must question what kind of concessions the UK will need to make.”
The FTSE 100, meanwhile, ended the day down 0.71 per cent at 7,563.21.
Smurfit Kappa shares slid 56p to 3,236p after Venezuela’s socialist government seized control of its operations in the country and detained two employees over allegations including price fixing and destabilising the economy.
Centrica shares nudged up 0.9p to 142.85p, despite British Gas paying out £2.65 million after regulator Ofgem found it overcharged more than 94,000 customers.
The biggest risers on the FTSE 100 included Microfocus, up 37.5p at 1,307.5p, and Bunzl, up 67p at 2,392p. The biggest fallers on the FTSE 100 included Tesco, down 8.3p at 249.9p, and
Royal Mail, down 15.3p at 464.3p.