FTSE 100 watch: Footsie climbs higher after EU leaders back Brexit deal

Melrose share price dips amid reports for lower-than-expected bids for GKN unit

FTSE 100 watch: Footsie climbs higher after EU leaders back Brexit deal

The UK benchmark index has climbed higher in today’s session, with investors digesting the latest Brexit developments as EU leaders approved UK Prime Minister Theresa May’s plan over the weekend. In individual FTSE 100 movers, shares in Melrose Industries (LON:MRO) have been sold off amid reports that the company had received lower-than-expected bids for a GKN unit.

FTSE 100 climbs higher

As of 12:32 GMT, Britain’s blue-chip index had added 57.71 points to stand 0.83 percent higher at 7,010.57. A weaker pound is lending support to the Footsie, with sterling retreating amid uncertainty ahead of next month’s parliament vote over Theresa May’s Brexit plan which won EU backing over the weekend.

“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, as quoted by Reuters.

Individual Footsie movers

In individual FTSE 100 movers, shares in Melrose have been sold off after Sky News reported  that executives at the turnaround group were deciding whether to press on with an immediate auction of GKN Powder Metallurgy following initial bids last week valuing the business at about £1.6 billion, well below analysts’ forecasts for a £2-billion price tag. Melrose’s share price currently stands 6.43 percent lower at 170.15p.

Rio Tinto (LON:RIO), which today unveiled a deal to sell its majority stake in Rössing Uranium, owners of  the Rössing mine in Namibia, is also underperforming the broader London market, having given up 1.63 percent to 3,582.50p so far today.

The FTSE 100 index was 0.69 percent higher at 7,001.12 points as of 12:56 GMT on Monday, 26 November 2018.

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