LONDON MARKETS: FTSE 100 Clings To Gains As London Investors Await Crucial Brexit Vote

By Emily Horton

Marks & Spencer announces job cuts, shares pull back

London markets clung to the flat line Tuesday as investor focus turned to a crucial parliamentary vote on U.K. Prime Minister Theresa May's EU withdrawal agreement.

Elsewhere, China announced plans to ramp up support for its economy, which boosted mining and oil stocks.

How are the markets trading?

The British pound bounced around, briefly pushing to levels not seen since mid-November (http://www.marketwatch.com/story/british-pound-volatile-as-brexit-vote-day-arrives-2019-01-15) (http://www.marketwatch.com/story/british-pound-volatile-as-brexit-vote-day-arrives-2019-01-15), but giving up those gains to push lower, trading at $1.2833 from $1.2866 late Monday.

The FTSE 100 , meanwhile, was flat at 6,856.26, after finishing down 0.9% on Monday.

What is driving the markets?

The landmark vote over May's divisive agreement for Brexit is scheduled to take place at 10:30 p.m. local time in the U.K. on Tuesday (5:30 p.m Eastern). Most expect it to be rejected in the worst defeat for any U.K. prime minister in history (http://www.marketwatch.com/story/brexit-brief-uk-prime-minister-faces-historic-defeat-in-landmark-vote-2019-01-15), with more than 100 Conservative politicians currently opposed to its terms.

In the event that the deal is voted down, May will have three days to come up with an alternative for exiting the European Union on March 29. However, EU leaders have insisted that the deal already agreed is the only one on offer.

Read:May in last-ditch push for Brexit deal votes -- what the City of London is saying (https://www.fnlondon.com/articles/may-in-last-ditch-push-for-brexit-deal-votes-what-the-city-is-saying-20190115)

Jeremy Corbyn, the leader of the opposition Labour Party, has said he would trigger a vote of no confidence in May's government if the deal is rejected.

In China, government officials have stepped up efforts to spur economic growth (http://www.marketwatch.com/story/china-to-ramp-up-efforts-to-support-economy-2019-01-15) amid signs the country's economic slowdown is deepening. Beijing intends to improve credit availability for smaller companies, accelerate infrastructure investment and cut taxes (http://www.marketwatch.com/story/china-to-slash-taxes-keep-currency-stable-to-offset-slowdown-2019-01-14).

What stocks are active?

Software company Sage Group PLC (SGE.LN) was among the big FTSE 100 gainers, rising close to 2%.

Commodity-related stocks rose after China announced stimulus moves. BP (BP.LN)(BP.LN) gained 0.7% and Royal Dutch Shell PLC (RDSA.LN) (RDSA.LN) rose 1%, while miner Antofagasta PLC (ANTO.LN) added 1.5%.

Retailer Marks & Spencer Group PLC (MKS.LN) eased 0.3% after announcing over 1,000 jobs will go (http://www.marketwatch.com/story/ms-to-cut-over-1000-jobs-in-store-closures-2019-01-15).

Paddy Power Betfair PLC topped the FTSE 100 fallers for the second day in a row, losing just over 2%.

Persimmon PLC (PSN.LN) turned flat after announcing a 4% gain in revenues (http://www.marketwatch.com/story/persimmon-revenue-up-4-profit-ahead-of-views-2019-01-15).

"Persimmon is still selling more homes at higher prices, but the rate of growth is slowing. That is to be expected in a cooling property market and following on from a pretty good run which has seen the house builder return prodigious amounts of cash to shareholders," Laith Khalaf, senior analyst at Hargreaves Lansdown, said.

(END) Dow Jones Newswires

January 15, 2019 09:15 ET (14:15 GMT)

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