Source: Sharecast
At 0900 BST, the FTSE 100 was up 0.8% at 5,847.97, while the pound was down 0.5% against the dollar at 1.3209 following reports the UK government is drawing up new laws that would override part of last year's EU withdrawal agreement as Downing Street threatened to collapse trade talks.
Prime Minister Boris Johnson has demanded a deal be reached by October 15. Johnson’s threat to undermine an international treaty would see Britain remove a legal requirement for new Northern Ireland customs inspections which were designed to stop the return of checks at the border with the Irish Republic.
The prime minister was reportedly set to tell the EU that unless a deal is struck by the October deadline the UK would be ready to trade on World Trade Organisation terms from January.
Spreadex analyst Connor Campbell said "Brexit came roaring back into the picture over the weekend - specifically fears of a no-deal Brexit, after reports broke that Boris Johnson’s government is preparing to unveil legislation regarding Northern Ireland on Wednesday that will override what is written in January’s withdrawal agreement".
"That act of aggression arrived alongside a fresh ultimatum, with Johnson claiming Britain will walk away from the table for good if a deal isn’t reached by October 15th. One final twist of the knife came as Johnson stated no deal was actually a ‘good outcome’.
"It is another example of the government actively chasing a no-deal Brexit, despite their pre-election claims of an ‘oven-ready’ agreement, and could pose a serious threat to sterling’s recent gains in the coming weeks."
The FTSE 100 tends to benefit when the pound weakens, as around 70% of its constituents derive their earnings from overseas.
In equity markets, Associated British Foods rallied as it said Primark's annual profit would at least be at the top of guidance after strong trading at the clothes chain in the fourth quarter. Primark's operating profit excluding exceptional charges for the year to 12 September will be at the top end or better of the stated £300m-£350m range compared with £913m a year earlier.
Transport operator FirstGroup surged after The Sunday Telegraph reported that its US operations have attracted interest from several major private equity firms.
Housebuilder Crest Nicholson advanced after an upgrade to ‘buy’ at Deutsche Bank, which said strong action has been taken to address the cost base and the stock is attractively valued.
Informa was weaker after a downgrade to ‘neutral’ at Goldman Sachs, which expects a slower recovery in the exhibitions market.
Market Movers
FTSE 100 (UKX) 5,847.97 0.84%
FTSE 250 (MCX) 17,527.47 1.00%
techMARK (TASX) 3,735.57 0.96%
FTSE 100 - Risers
Scottish Mortgage Inv Trust (SMT) 880.00p 3.65%
Fresnillo (FRES) 1,305.50p 2.96%
Ashtead Group (AHT) 2,635.00p 2.89%
Persimmon (PSN) 2,567.00p 2.56%
Barratt Developments (BDEV) 514.40p 2.51%
Pearson (PSON) 534.00p 2.50%
Aveva Group (AVV) 4,830.00p 2.37%
Taylor Wimpey (TW.) 117.50p 2.31%
Avast (AVST) 542.50p 2.26%
Polymetal International (POLY) 1,961.00p 2.19%
FTSE 100 - Fallers
NATWEST GROUP PLC ORD 100P (NWG) 106.35p -1.35%
BT Group (BT.A) 100.35p -1.28%
Lloyds Banking Group (LLOY) 26.60p -1.26%
Informa (INF) 391.60p -0.94%
International Consolidated Airlines Group SA (CDI) (IAG) 218.00p -0.64%
Royal Dutch Shell 'B' (RDSB) 1,032.60p -0.29%
Morrison (Wm) Supermarkets (MRW) 190.40p -0.21%
Vodafone Group (VOD) 105.10p -0.15%
Royal Dutch Shell 'A' (RDSA) 1,077.40p -0.07%
BP (BP.) 257.35p -0.06%
FTSE 250 - Risers
Future (FUTR) 1,668.00p 14.72%
FirstGroup (FGP) 45.14p 13.53%
Crest Nicholson Holdings (CRST) 201.60p 6.44%
Dechra Pharmaceuticals (DPH) 3,270.00p 5.89%
Network International Holdings (NETW) 402.80p 4.03%
Edinburgh Worldwide Inv Trust (EWI) 266.00p 3.91%
TUI AG Reg Shs (DI) (TUI) 360.30p 3.74%
Allianz Technology Trust (ATT) 2,360.00p 3.51%
Centamin (DI) (CEY) 205.00p 3.33%
Hochschild Mining (HOC) 239.40p 3.19%
FTSE 250 - Fallers
Petrofac Ltd. (PFC) 146.90p -3.07%
Paragon Banking Group (PAG) 338.60p -2.42%
Energean (ENOG) 500.00p -2.06%
Softcat (SCT) 1,277.00p -1.84%
Spirent Communications (SPT) 272.50p -1.80%
Wood Group (John) (WG.) 230.10p -1.71%
Trainline (TRN) 381.20p -0.99%
Babcock International Group (BAB) 256.80p -0.96%
Gamesys Group (GYS) 1,106.00p -0.90%
BlackRock Smaller Companies Trust (BRSC) 1,210.00p -0.82%