The FTSE 100 closed 102 points higher on Wednesday, despite EU tensions.
European Tensions
MPs have criticised Theresa May’s Brexit deal as she prepares to meet with Brussels later this week.
Wednesday also saw the rejection of Italy’s proposed budget for 2018/19. Italy’s debt is second only to Greece, at 131% of national output.
David Madden, an analyst at CMC Markets, said:
“European stock markets have gained ground today even though the tension between the Italian government and the EU has risen.”
“The EU announced that Italy will be disciplined for their budget, and this could cause massive instability in the region.”
“Brexit is still doing the rounds in the news, but traders are unlikely to take any notice until there are new developments,” he added.
Fallers
Wednesday’s fallers included Sage Group (LON: SGE) and Kingfisher (LON: KGF), whose shares fell 4.1% and 2.7% respectively.
Sage Group warned a sharp fall in margins this year whilst Kingfisher reported a 1.3% drop in third-quarter like-for-like sales.
Kingfisher revealed plans to exit the smaller markets in Russia, Spain and Portugal.
“We are committed to our plan and to building a strong business for the long-term. As part of this commitment, we have taken the decision to exit Russia, Spain and Portugal,” said Véronique Laury, the chief executive.
“This will allow us to apply our strategy with more focus and efficiency in our main markets.”
Shares also slid in Babcock (LON: BAB), which revealed a one-off £120 million hit to reshape its oil and gas business.
Pre-tax profits fell to £65.1 million – down by almost two-thirds. Revenue in the group fell by 2.7% to £2.25 billion. Shares fell 12% on opening.
“We had a solid first half with underlying results in line with our expectations and we have confirmed guidance for the full year. We are taking decisive actions to further strengthen the group which will deliver benefits next year and beyond,” said the chief executive, Archie Bethel.
