FTSE 100 edges higher as Brexit talks given Sunday deadline
The FTSE 100 opened higher as the lack of progress in Brexit talks continued to pressure the pound.
London’s blue-chip index climbed 0.32 per cent by 8.40 GMT as investors considered how likely a Brexit deal is. Sterling sank 0.6 per cent against the dollar and 0.8 per cent against the euro.
Boris Johnson and the EU have set a Sunday deadline for a “firm decision” on the future relationship between the two sides.
Downing Street said “large gaps remain” between the EU and UK after the Prime Minister and Ursula Von der Leyen met for dinner in Brussels.
Even in the face of Brexit uncertainty the FTSE 100 has managed seven consecutive daily gains.
News that the UK’s economic recovery continues to slow also did little to quell investors’ nerves this morning. GDP rose 0.4 per cent in October according to the latest Office for National Statistics (ONS) statistics, down from a 1.1 per cent growth in September.
GDP is 23.4 per cent higher than its April low but it remains 7.9 per cnet lower than pre-pandemic levels.
The FTSE’s European peers also inched higher this morning ahead og the highly-awaited European Central Bank meeting. Germany’s Dax edged 0.09 higher while France’s Cac index rose 0.4 per cnet.
The ECB is meeting with expectations of more financial stimulus to help the eurozone which has been hit by a second round of lockdown restrictions. Analysts are expected a €500bn increase to the bank’s Pandemic Emergency Purchase Programme.