(Sharecast News) - London stocks edged higher in early trade on Thursday as sterling slid amid stalled Brexit talks, with the deadline now extended to Sunday.
At 0855 GMT, the FTSE 100 was up 0.4% at 6,587.85, while the pound was down 0.6% against the dollar at 1.3322 and 0.7% lower versus the euro at 1.1018.
Spreadex analyst Connor Campbell said: "Sterling took little comfort from the announcement of a new - and, this time, likely permanent - Brexit deadline.
"Following a dinner diplomatically described as 'frank' by Downing Street, and 'lively and interesting' by European Commission chief Ursula von der Leyen herself, Boris Johnson's trip to Brussels failed to yield a Brexit deal.
"Instead both sides will reconvene at the negotiating table, aiming to bridge the 'very large gaps' that reportedly remain before the end of the weekend."
Campbell also noted that it was set to be "a big day in the US", with the Food and Drug Administration due to meet later to discuss the Pfizer/BioNTech vaccine, which has already been deployed in the UK and approved in Canada.
"It may seem like a forgone conclusion at this point, but a thumbs up from the FDA could give the Dow Jones a shot in the arm," he said.
Investors were also digesting the latest reading on the UK economy, which showed a sharp slowdown in growth in October amid the reintroduction of certain Covid-19 restrictions.
According to figures released by the Office for National Statistics, GDP rose 0.4% on the month, in line with consensus expectations and marking the six consecutive month of growth, but down from the 2.2% and 1.1% month-on-month increases seen in August and September.
October GDP is now 23.4% higher than its low in April - when it slumped by a record 19.5% - but remains 7.9% below the levels seen in February 2020, before the full impact of the pandemic.
Capital Economics said: "The economy continued to grow in October, but at a snail's pace. And with the Covid-19 restrictions likely to remain in place for some time, the economy is in for a difficult few months yet.
"But scope for a decent 'vaccine bounce' next year should allow the economy to regain its pre-pandemic level in early 2022. And we now think that by the middle of the decade the economy won't be much smaller than if the crisis had never happened."
In equity markets, Mike Ashley's Frasers Group surged after it raised full-year profit guidance as it reported higher profits at the half-year, driven by strong sales online and at stores as they reopened after the Covid-19 lockdown.
Online supermarket Ocado fell sharply despite lifting its full-year earnings forecast as it reported a jump in fourth-quarter revenue amid continued strong demand.
Travel operator Tui was in the red after swinging to a full-year loss of €3bn as revenues tumbled as the pandemic and related restrictions continued to take their toll.