Sterling rallies on wave of optimism

A wave of Brexit optimism pushed the pound higher and boosted shares in UK-focused firms.

The FTSE 100 closed 1.81 points lower at 7,211.64 at the end of trading yesterday.

Rumours that UK and EU negotiators are closing in on a draft Brexit deal were cheered by traders, pushing sterling higher.

The pound was 0.86% up against the US dollar at 1.273, and up 0.75% against the euro at 1.153.

The FTSE 250 jumped higher as its significant number of UK-focused firms meant it was buoyed by market optimism.

Hopes of a Brexit deal washed away concerns over worse than expected jobs data from the Office for National Statistics, which revealed the sharpest decline in UK employment for more than five years.

“Hopes of a deal washed away concerns over jobs data”

European markets rose as traders welcomed positive reports over both Brexit and the USChina trade war.

The German Dax increased by 1.15% while the French Cac moved 1.05% higher.

The price of oil moved marginally higher as it remained subdued on the back of poor Chinese producer price index data. The price of a barrel of Brent crude increased by 0.17% to 59.30 US dollars.

The biggest risers on the FTSE 100 were Land Securities, up 54.2p at 946p, British Land, up 32.2p at 623p, Auto Trader, up 27.8p at 550.4p and United Utilities, up 43.2p at 865.4p.

The biggest fallers on the index were Fresnillo, down 23.8p at 610.6p, Evraz, down 13.7p at 404p, Reckitt Benckiser, down 153p at 5,940p and RELX, down 44p at 1,772.