FTSE 100 creeps up on Christmas Eve

Traders hoping that the shortened business day on Christmas Eve - as markets closed at 12.30pm - would include a deal between the UK and EU were left disappointed.

The FTSE 100 started the half day positively, opening up 0.43%, but fell back as the day progressed, ending the session up just 6.36 points, or 0.1%, at 6502.11.

But there was better news on the UK- focused FTSE 250 where the index closed up 248.92 points, or 1.23%, at 20546.68.

The second- tier index has seen growth of 5.8% since hitting three- week lows on Monday.

But the standout performer has been the pound, which has enjoyed a steady rise against the dollar since Monday and looked close to hitting highs not seen since May 2018.

Since lows on Monday, when the pound sunk to 1.320, it reached as high as 1.3612 during Thursday morning - a rise of 3.12%.

As markets closed on Thursday it was up 0.61% against the dollar, with a pound worth 1.357. The pound was also up 0.5% against the euro at 1.113.

Currency markets trade 24/ 7 and it was expected further moves would come as more announcements were made throughout the day.

David Madden, market analyst at CMC Markets UK, said: “The pound has seen a lot of volatility in recent weeks and months as the uncertainty of the UK’S future trading relationship with the EU has impacted the currency.

“Some traders have been avoiding sterling due to the lack of clarity with respect to the EU situation.

“This morning there has been a lot of talk that a deal will be announced and that has lifted the pound. Sterling is up 0.7% versus the US dollar and at one point in the session it came within a whisker of printing a new 31- month high against the US dollar.”

The French Cac 40 was flat as London closed. German markets were shut.

Brexit optimism helped banks, supermarkets and housing developers enjoy some of the biggest boosts in share prices.

Lloyds Banking Group was the biggest riser on the FTSE 100, closing up 1.48p, or 3.99%, at 38.605p, while rival Barclays closed up 2.78p at 154.6p, and Natwest Group was up 2.05p at 168.95p.

Tesco closed up 6.7p, or 2.96%, at 232.9p, Morrisons rose 2.45p to 176.3p, and Sainsbur y’s increased 2.7p to 226.7p.

Property companies including Barratt Developments, Berkeley Group, Persimmon and Land Securities were also all up.