Markets

FTSE 100 Rallies As Pound Hits Two-year Low

(RTTNews) - U.K. stocks rose sharply on Monday, thanks to a weaker pound after the government ramped up its preparations for a no-deal Brexit in October.

The British pound slid to a two-year low against the dollar after Chancellor Sajid Javid said he would announce an urgent spending blitz to prepare for a no-deal departure on Oct.31.

The benchmark FTSE 100 was up 83 points or 1.10 percent at 7,632 after climbing 0.8 percent on Friday.

London Stock Exchange Group shares jumped nearly 15 percent. The exchange operator confirmed that it is in discussions to buy Refinitiv, the financial data and trading platform provider, for a total enterprise value of about US$27 billion.

Tobacco giant Imperial Brands rose half a percent after announcing its foray into the cannabis sector.

Ryanair Holdings advanced 1.8 percent. The low-cost airline backed its FY profit view despite posting a 21 percent drop in quarterly profits.

Just Eat soared 25 percent after it agreed to merge with its Dutch rival Takeaway.com in a £9bn deal.

Property development and investment company Hammerson declined 1.5 percent as it reported a first-half loss before tax of 319.2 million pounds compared to profit of 55.8 million pounds, prior year.

In economic releases, U.K. mortgage approvals declined to the lowest since January, the Bank of England reported.

The number of mortgage approvals fell to 66,440 in June from 65,647 in May. This was the lowest since January and below the forecast of 65,800.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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