London close: FTSE fends of Brexit nerves to end Wednesday higher

Equities in London fended off Brexit jitters to close higher, having overcome some softness seen around the time Prime Minister Theresa May fired the starting gun on UK divorce talks with the EU.

The FTSE 100 finished up 0.41% to 7,373.72, and the FTSE 250 rose 0.13% to 18,978.65. At 16:24 GMT, sterling was down 0.21% to $1.2424, and up 0.31% to €1.1550. Gold fell 0.32% to $1254.80 an ounce.

In the US, the Dow Jones was down, but the S&P 500 and Nasdaq Composite rose, while in Europe the Euro Stoxx 50, Dax and Cac 40 all improved.

Earlier on Wednesday, May's much telegraphed letter activating Article 50 of the Lisbon Treaty was received by the EU, sparking up to two years of negotiations.

"A historic day for the UK and Europe as a whole has been matched by a suitably volatile day for the FTSE, with initial gains fading to red, only to rebound into the close," said IG market analyst Joshua Mahony.

"Perhaps today's FTSE trade was a precursor of the times we have ahead both economically and emotionally, as this painful divorce progresses from stage to stage," he added.

"The forthcoming years will no doubt prove volatile and unpredictable, yet ultimately the end result is what matters most."

On that note, global markets will be scrutinising any updates from Brexit talks -- whether official or unofficial -- to divine what the post divorce wonderland might look like.

Michael Hewson, chief market analyst at CMC Markets UK, summed the session up succinctly:

"It's been a positive day for European markets with the political theatre of the triggering of Article 50, by the UK taking up most of the headlines."

He and other market watchers would be looking to the official EU rejoinder to the conciliatory tone of May's letter.

Returning to London stocks, London Stock Exchange rallied after the European Commission blocked its proposed merger with its German peer, Deutsche Boerse.

The EC said such a deal would significantly reduce competition. The decision came as the companies failed to offer up adequate remedies to address all of the commission's concerns.

Holiday-tour operator TUI fell after it said winter 2016/17 and summer 2017 were trading in line with expectations and reiterated its guidance of at least 10% growth in group underlying EBITA in 2016/17.

BHP Billiton firmed after its iron ore chief Edgar Basto warned the supply of low-cost seaborne iron ore was expected to grow faster than demand, but assured the company was well-positioned to continue to grow value and shareholder returns.

3i was stronger after an upgrade to 'overweight' from 'equalweight' by Morgan Stanley, but Acacia Mining was under the cosh after JP Morgan Cazenove downgraded the stock to 'neutral' from 'overweight', citing Tanzanian obstacles and an ongoing re-rating.

Miners were also rising, although arguable revitalising after being sold much lower earlier in the week. Antofagasta, Rio Tinto and Anglo American all stepped higher.

In the oil sector, both BP and Shell gained as well. Commercial property companies like Land Securities and Hammerson were improving, as were various financial stocks.

On the macro front, Bank of England figures revealed UK mortgage approvals fell to 68,315 in February, from 69,114 in January, versus expectations for an uptick to 69,900.

Meanwhile, consumer credit rose by £1.44bn, down from the month before but above expectations for a £1.3bn increase.

Market Movers

FTSE 100 (UKX) 7,373.72 0.41%
FTSE 250 (MCX) 18,978.65 0.13%
techMARK (TASX) 3,472.45 0.06%

FTSE 100 - Risers

3i Group (III) 740.50p 5.71%
London Stock Exchange Group (LSE) 3,106.00p 2.71%
BHP Billiton (BLT) 1,260.00p 2.69%
Antofagasta (ANTO) 816.00p 2.19%
Ashtead Group (AHT) 1,638.00p 2.12%
British American Tobacco (BATS) 5,318.00p 1.90%
BP (BP.) 461.20p 1.71%
Intu Properties (INTU) 276.10p 1.58%
Convatec Group (CTEC) 273.00p 1.52%
Associated British Foods (ABF) 2,649.00p 1.42%