Uk-focused firms boosted by pound fillip

A fresh wave of Brexit optimism pushed the value of 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.

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

Neil Wilson, chief market analyst at Markets. com, said: “Sterling jumped to its strongest in four months against the US dollar and cleared a big technical level as reports said UK and EU negotiators are closing in on a draft Brexit deal.

“Sterling against the dollar has jumped above its 200-day moving average for the first time since May. If this holds, it’s looking promising for bulls – but holding the level depends entirely on the outcome of these talks.”

The pound was 0.86 per cent up versus the US dollar at $1.273, and up 0.75 per cent against the euro at €1.153.

The FTSE 250 jumped higher as its significant proportion of Uk-focused firms meant it was buoyed by market optimism surrounding Brexit, while the FTSE 100 dipped marginally.

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

Shares in recruiter Hays jumped 11.7p to 155.4p after it said it managed to keep net fees stable in the face of a difficult UK private sector.

Elsewhere, pub group and brewer Marston’s declined after weaker food sales weighed down on the group’s annual profits. Shares in the firm fell 9p to 113p.