Politics dictates mood in the City

Brexit and trade war optimism boosted global markets yesterday, as Commons Speaker John Bercow blocked the government’s planned “meaningful vote” on its Brexit deal.

Boris Johnson was looking for support from MPs after pulling the vote on Saturday when they forced him to ask the EU to delay Brexit. But Mr Bercow said parliamentary convention meant the government could not bring the same vote again.

The FTSE 100 dipped in the immediate aftermath of the news, but it bounced back soon after, closing the day up 13.07 points at 7,163.64. However the rise was considerably below the morning peak of 7,196.42.

The market was boosted after Larry Kudlow, an economic adviser to US president Donald Trump, made positive noises over the

“The market was boosted by positive noises over the US trade war with China”

country’s trade war with China. It helped push the FTSE higher despite downward pressure from the pound, which rose 0.45% to 1.2985 against the US dollar. Sterling also rose against the euro, by 0.59% to 1.652.

Germany’s Dax shares index was up by 1% to 12,758.44, while France’s Cac was up by 0.35% to 5,656.13.

In company news, private equity giant Advent International is ready to commit to the government that it will protect UK jobs at Cobham as it seeks approval for its £4 billion takeover of the defence firm.

Just Eat has posted rapidly growing sales in the third quarter despite a backdrop of “softer consumer spending”.

The food delivery company saw sales jump 25% to £247.5 million in the three months to September.