LONDON, Oct 20 — London’s FTSE 100 edged higher today, boosted by a clutch of upbeat quarterly corporate earnings, although gains were capped by concerns over tougher coronavirus lockdowns in parts of England and Brexit-related uncertainty.
The blue-chip FTSE 100 rose 0.3 per cent, with shares of Dettol and Lysol maker Reckitt Benckiser jumping 2.6 per cent after it reported a bigger-than-expected rise in third-quarter sales.
The domestically focused mid-cap FTSE 250 added 0.4 per cent, led by a 6.1 per cent jump for soft drinks maker Britvic Plc as it forecast annual adjusted operating profit ahead of market expectations.
New business restrictions due to surging Covid-19 infections and a stalemate over Brexit have pressured UK markets this month, with analysts also warning of a further slowdown in domestic economic growth.
A junior business minister said today Britain saw no point in talking with the European Union until the bloc starts to treat Britain as a sovereign state, dashing earlier optimism that negotiations could carry on.
“Markets have been bracing themselves for a no-deal exit for some time, or certainly accepting that as a distinct possibility,” said Russ Mould, investment director at AJ Bell.
A recent Reuters poll found the Bank of England was likely to supplement its quantitative easing war chest next month to offer more support to a faltering economic recovery.
Asian markets were also subdued due to concerns over an impasse in a new US stimulus package ahead of the November 3 presidential election.
In company news, Bellway Plc gained 0.9 per cent after the homebuilder reported a 43 per cent year-on-year jump in its forward order book and resumed dividend payment as demand for homes picked up after the initial round of lockdowns.
Petra Diamonds Ltd slipped four per cent after the diamond miner abandoned plans to sell the business in favour of a debt-for-equity restructuring.
Energy, mining and insurance stocks were among the biggest decliners of the day. — Reuters
