LONDON: London’s mid-cap index rose for a fourth straight day on Thursday with investors believing the UK and European Union would bridge the gaps to a post-Brexit trade deal, while advertising firm WPP jumped after an upbeat sales forecast.
The domestically focussed FTSE 250 gained 1% as the European Union’s chief negotiator said progress had been made.
The Bank of England said it was ready to tolerate an inflation spike in the event of a trade deal not being reached but kept its stimulus unchanged.
The blue-chip FTSE 100 gave up early gains to dip 0.3%, weighed down by losses in consumer staples. Meanwhile, US stock indexes climbed to a peak on optimism about fiscal stimulus.
WPP, the world’s biggest advertising company, rose 4.2% after saying it expected net sales to return to pre-pandemic levels by 2022, a year earlier than expected.
SSP Group, the owner of Upper Crust and Caffe Ritazza snack chains, dropped about 2.7% as it issued a grim sales outlook.
“The (Monetary Policy) Committee continues to assume that a free trade deal will be agreed and ratified in time for it to come into effect immediately after the transition period ends on 31 December,” said Daniel Vernazza, chief international economist at UniCredit Bank in London.—Reuters
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