FTSE joins European bounce as Brexit outlook keeps sterling in check

  • Reuters
  • Stock Market News
FTSE joins European bounce as Brexit outlook keeps sterling in check
Credit: © Reuters.

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* FTSE 100 up 1.1 pct; mid caps up 1.2 pct

* Financials underpin index, oil stocks recover

* Faroe Petroleum surges above DNO bid price

By Danilo Masoni

MILAN, Nov 26 (Reuters) - Britain's top share index joined a European rally on Monday as gains in sterling were curbed by uncertainty over next month's vote in parliament over the Brexit deal that won backing on Sunday in Brussels.

The exporter-heavy FTSE 100 .FTSE , which makes around 70 percent of its income abroad and tends to benefit from a weaker pound, rose 1.1 percent, while the more domestically focused FTSE 250 index .FTMC added 1.2 percent.

"Theresa May's Brussels success comes laden with some potentially deal-sinking domestic caveats, namely the House of Commons' 'meaningful vote' expected to be held on 12th December," said Forex.com analyst Connor Campbell.

Financials gave the biggest boost to the FTSE with shares in banks HSBC HSBA.L , Lloyds LLOY.L and Barclays BARC.L rising between 1.6 and 2.4 percent after EU leaders finally sealed a Brexit deal, saying the package agreed with Prime Minister Theresa May was the best Britain will get. gains also reflected strength in the broader European banking sector .SX7P which rallied to reports that Italy could lower its budget deficit target to avoid a disciplinary procedure from Brussels. stocks were also in demand as crude prices clawed back some losses from a nearly 8-percent plunge the previous session. O/R

Shares in Royal Dutch Shell (LON: RDSa ) RDSa.AS and BP BP.L both rose 1.5 percent, while energy services firm John Wood Group WG.L gained more than 4 percent to lead gainers on the FTSE after HSBC upgraded the firm to buy.

Faroe Petroleum FPM.L surged 24 percent after Norway's DNO DNO.OL launched a hostile bid to buy the independent oil and gas company for around 608 million pounds. Petroleum rose to 156.5 pence per share, topping the 152 pence offered by DNO.

Among the few losers on the FTSE was Melrose MRON.L , down 5 percent after Sky News reported that the industrial company had got lower-than-expected bids for its Powder Metallurgy unit.

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