FTSE rises as draft deal gets a nod from EU

Market report Hannah Burley

Markets rose as investors clung to the possibility that Prime Minister Theresa May could get her Brexit deal approved in Parliament after it received the backing of EU leaders over the weekend.

Reports that Italy might reduce its deficit requirement for its budget were also supportive to European trade.

David Madden, analyst at CMC Markets, said: “News over the weekend that EU leaders endorsed the deal for the UK’S exit of the bloc has also lifted investor sentiment.

“Mrs May will have an uphill struggle, but some MPS might vote in favour of it as they are too scared of no-deal scenario.”

This nevertheless boosted the FTSE 100, which closed up 1.2 per cent at 7,036.

The pound seemed to be less certain, losing 0.1 per cent against the dollar at $1.281 and falling the same versus the euro to €1.130.

In corporate news, shares in WPP closed up 3.1 per cent at 879p after the advertising giant said it will merge its Wunderman and J Walter Thompson agencies. The group – rocked by the departure of founder and chief executive Sir Martin Sorrell – said the merged entity will be called Wunderman Thompson, with a focus on creative, data and technology.

Rio Tinto shares slipped 0.4 per cent to 3,629p after the mining giant announced the sale of an African uranium business as part of its strategy to shed unwanted assets.

The Anglo-australian firm will sell its majority stake in Namibian mine owner Rossing Uranium to China National Uranium Corp for up to $106.5 million (£83.1m). Shares in Aberdeen’s Faroe Petroleum soared after its largest shareholder launched a £608 million takeover bid for the company. Shares fell after the firm said it will no longer develop its treatment for adults and adolescents with severe uncontrolled asthma.