Markets remain unsure if brexit deal can be reached

Another day, another wait for traders hoping that the UK and EU will finally say whether a last minute deal can be reached or if their future consists of tariffs via a no-deal Brexit.

Investors were cautious ahead of the crucial talks in Brussels due to take place on Wednesday night, sending the FTSE 100 up just 5.47 points, or 0.1 per cent, at 6,564.29.

The pound showed a bit more spirit, rising 0.26 per cent against the dollar to 1.339.

It was also up 0.47 per cent against the euro as markets closed for the day at 1.109.

Neil Wilson, financial analyst at Markets.com, said: “So far no one is prepared to take a decisive position and cable continues to chop around the 1.33-34 area (against the dollar).

“This only shows that traders think both outcomes - deal or no - deal - are still ver y much in the running. We await signals from the dinner between Boris Johnson and Ursula von der Leyen this evening.”

In Europe the CAC 40 in Paris ended down 0.3 per cent, while the DAX 30 in Frankfurt rose 0.5 per cent.

In company news, Tesco confirmed it will finally part ways with its Asian arm after regulators approved its £8b sale of the business.

The deal means the supermarket will be able to pay out a £5b special dividend in February. Shares closed up 2p at 226.5p.

Cigarette giant British American Tobacco said it believed it will take a smaller hit from the pandemic than previously thought after South Africa ended a ban on cigarette sales early.

A drop of just 2.5 per cent is now expected from Covid-19, compared with previous estimates of 3 per cent. Shares closed up 7p at 2,909p.

The boss of bus group Stagecoach has warned that people will permanently travel less due to the shift towards home-working during the coronavirus pandemic as the group revealed that profits crashed more than 90 per cent.

Chief executive Martin Griffiths said Covid-19 will see people make fewer journeys even after the crisis has passed as a five-day working week in the office is consigned to history.

But he said he is “optimistic” that bus travel demand will bounce back amid a push to switch away from single car journeys.

Stagecoach shareholders did not seem to mind a profits crash of 90 per cent at the bus business, clinging to the optimistic future painted by Mr Griffiths. Shares closed up 4.7p at 78.65p.