FTSE 100 trades flat amid Brexit caution
European markets were flat this morning, with UK traders struggling for direction following four sessions of gains.
Uncertainty over the future of Brexit has driven caution in this morning’s session, with the FTSE 100 falling by 0.1 per cent.
The Dax is down by roughly 0.1 per cent while the Cac is trading flat.
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London’s blue-chip stocks were boosted by advertising giant WPP and Barclays, which both enjoyed share price rises this morning on the back of their latest financial results.
Sterling is also trading flat at just above $1.28.
In spite of a quiet opening today, the exporter-heavy FTSE 100 has made gains in recent days following a wobble in the pound.
Brexit uncertainty has continued to fuel jitters on European markets this week.
Today the EU is set to hold talks on whether to give a Brexit delay after Prime Minister Boris Johnson tabled an attempt to secure an election.
Johnson yesterday demanded a 12 December vote to break the paralysis gripping British politics.
EU officials will meet in Brussels to discuss the length of a new delay, with the choice expected to be between a further three months or a two-tier “flextension”.
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“If Boris doesn’t get his election, what then? The key now one feels is whether no-deal risks come back and bite us. There’s a clear sense in the market it’s off the table, but we are in very strange and uncertain times,” said Neil Wilson, chief market analyst for Markets.com.
There was also mixed trading in Asia overnight amid the ongoing standoff between China and the US.
Wilson added: “Asia has been weaker after a fairly hawkish speech on China by Mike Pence that’s not going to do much to soothe trade jitters. He attacked China’s ‘destabilising’ influence as well as their human rights record in Hong Kong, and attacked US corporates for becoming Chinese lap dogs – singling out Nike in particular, saying they check their conscience at the door or some such.”