Fresh delay to Brexit buoys stock market

The FTSE 100 edged higher on the back of news that the UK’S departure from the European Union could be delay until after New Year.

Prime Minister Boris Johnson’s plan to push for a general election in December was greeted warmly by traders, with the pound also finishing the day in the green, while London’s bluechip index closed up 6.81 points at 7,331.28.

David Madden, analyst at CMC Markets UK, said: “Stocks are higher on the back of the news that Brexit has been delayed until potentially the end of January 2020.”

Sterling moved higher on the news of the Brexit extension, but the rise remained modest as traders stayed cautious.

The pound was up 0.33 per cent versus the dollar at $1.286, and up 0.22 per cent against the euro at €1.158.

In company news, HSBC slumped as it said it will speed up remodelling plans after its chief executive singled out the poorly performing UK business just weeks after reports that up to 10,000 jobs could be cut. Shares dived by 23p to 594.4p by the close of play.

Elsewhere, Just Eat edged higher as the takeaway delivery firm’s takeover battle continued to heat up.

Takeaway.com, which agreed a merger with Just Eat, launched an attack on investor Prosus, which has also made its own bid for the UK firm. Shares in Just Eat rose by 3.2p to 761p.

Shares in advertising tycoon Sir Martin Sorrell’s S4 Capital rose after he confirmed plans to expand the rapidly growing media empire with two acquisitions in the UK and South Korea. S4 Capital shares closed flat at 165.5p.