Britain's FTSE rises slightly as defensives, miners gain
(For a live blog on European stocks, type LIVE/ in an Eikon
* FTSE 100 up 0.4 pct; FTSE 250 up 0.5 pct
* Defensives, miners help lift market as relative calm
LONDON, Nov 19 (Reuters) - UK shares were slightly higher on
Monday amid relative calm as investors fled to safety in
defensive stocks after last week's tumult and Prime Minister
Theresa May continued to fight for support for her Brexit deal.
Miners also helped the FTSE 100, which was up 0.33
percent at 1016 GMT, outperforming most of its euro zone peers
after an earlier rally ran out of steam.
"Things are a bit calmer and there's not been anything
particuarly exciting bearing in mind that end of last week,"
said Mike van Dulken Mike van Dulken, head of research at
A rout in Renault shares after its chief executive Carlos
Ghosn was arrested in Japan on suspicion of under-reporting his
salary, cast a pall over France's CAC 40.
With the earnings season drawing to a close, UK investors
focused on politics as May vowed to fight on to gather support
for her draft European Union divorce deal as dissenters in her
own party scrambled to trigger a leadership challenge.
"May might have overcome the issue of no confidence vote and
that adds an element of certainty and may mean we're looking at
a deal rather than a no deal and businesses like certainty,"
said van Dulken.
Defensive stocks, such as British American Tobacco,
contributed the greatest gains to the market, with miners
adding 0.54 percent.
Banking and retail stocks recovered some of the ground lost
during last week's sell-off, with Kingfisher up 1.6
percent and Lloyds Bank up 1.2 percent.
But the gains were meagre compared with the millions of
dollars wiped off the sectors last week.
"Some of the stocks that were brutalised the most haven't
really bounced, so there's no big UK relief if you look at
what's happening on the FTSE today," said Eric Moore, income
fund manager at Miton.
Housebuilders continued to get bulldozed, with traders
citing data from real estate website RightMove that showed UK
house prices in October fell year on year for the first time
Barratt Development and Persimmon were down
1.6 percent and 0.8 percent respectively.
Last week, the sector was one of the hardest hit by the
chaos over Brexit with investors worrying about the impact of a
possible second referendum, general election or hard Brexit on
the British economy.
Among the midcaps, Diploma jumped 5.8 percent to the top of
the board as investors cheered better-than-expected full-year
Intermediate extended last week's gains triggered by
earnings after a positive note from JPMorgan.
(Reporting by Josephine Mason; additional reporting by Helen
Editing by Raissa Kasolowsky)
© 2018 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.