Brexit reports help Footsie make gains

Market report Perry Gourley

The Footsie benefited from rises on exchanges across Europe on the back of a rebound in US markets amid hopes that tax reforms would benefit businesses.

The index closed up 38.48 points at 7,338.97 as the pound also surged on reports that the UK had conceded Northern Ireland will remain part of the EU single market and customs union in order to avoid a hard Irish border.

Michael Hewson, chief market analyst at CMC Markets UK, said: “European markets have bounced back strongly after finishing last week sharply lower, taking their lead from the rebound in US markets, and the passing of the Senate tax reform bill at the weekend.

“Hope that the passing of US tax reform will boost economic activity in the US has boosted companies that do a significant amount of their business in the US have pushed to the top of the FTSE 100 with Ashtead, Ferguson and CRH all higher on the back of the US tax reform hopes.”

Shares in the London Stock Exchange rose 4p to 3,787p as an activist investor claimed shareholders have “lost faith” in chairman Donald Brydon as it released a damning dossier ahead of a crunch vote on his future. Christopher Hohn’s Children’s Investment Fund Management is pressing for the immediate removal of Brydon, who it accuses of pushing out chief executive Xavier Rolet.

Convenience retailer Mccoll’s fell 15p to 275p despite recording annual revenue of over £1 billion for the first time. Shares dipped as it said there had been a slowdown in the fourth quarter. Car firm Pendragon edged up 0.75p at 26p after it said it is shutting dealerships. The photonics technology group said it had received a milestone order from one of its Chinese partners for a wind energy sensor system. Shares in the petroleum firm fell despite what it described as encouraging results from its interest in the Paradox Basin in Utah.