(Sharecast News) - London stocks dipped in early trade on Monday as sterling tumbled on reports that Prime Minister Boris Johnson may give up on Brexit talks within hours.
At 0845 GMT, the FTSE 100 was 0.2% weaker at 6,538.67, while the pound was down 1.2% against the dollar at 1.3274 and 1% lower versus the euro at 1.0974 following a report in The Sun that Johnson is ready to call time on Brexit negotiations if the EU refuses to budge from its "outrageous" demands.

Spreadex analyst Connor Campbell said: "Another weekend full of contradictory Brexit headlines has left the pound worried and in the red this Monday morning.

"Despite EU claims that there has been a breakthrough over fishing rights - something in and of itself denied by UK sources - Monday's reports have Boris Johnson ready to abandon negotiations 'within hours'.

"Though we've been at the brink many times over the last four and a half years, it seems that Brexit talks are finally reaching their crescendo, for better or worse. Some reports suggest that if both sides don't announce a commitment to keep talking by the end of the day, then 'no deal' is the only option left."

The FTSE 100 - which tends to benefit from a weaker pound as around 70% of its constituents derive most of their earnings from overseas - was faring better than its European counterparts.

In equity markets, housebuilders tanked on Brexit concerns, with Berkeley, Persimmon, Barratt, Vistry and Bellway all sharply lower.

Frasers Group lost ground after confirming it was in talks with administrators of retail chain Debenhams on a potential rescue, but warning that "time is short" to do a deal.

Wizz Air flew lower after a downgrade to 'hold' at HSBC and Rotork was knocked lower by downgrade to 'neutral' at JPMorgan.

On the upside, Games Workshop rallied after it declared a dividend of 60p a share as the miniature wargames maker upgraded its first-half profit forecast for the third time in three months. The FTSE 250 company said pre-tax profit for the six months to the end of November would be at least £90m, up from £59m a year earlier, on revenue up 25% to about £185m.

AstraZeneca was boosted by an upgrade to 'overweight' at Morgan Stanley, while Vodafone was lifted by an upgrade to 'buy' at Redburn. Micro Focus surged after Goldman Sachs lifted the stock to 'buy'.

Market Movers

FTSE 100 (UKX) 6,538.67 -0.18%
FTSE 250 (MCX) 20,018.59 -0.81%
techMARK (TASX) 4,110.77 0.67%

FTSE 100 - Risers

British American Tobacco (BATS) 2,797.00p 2.79%
Bunzl (BNZL) 2,383.00p 2.06%
AstraZeneca (AZN) 8,109.00p 1.90%
Imperial Brands (IMB) 1,487.00p 1.36%
Compass Group (CPG) 1,482.00p 1.33%
Vodafone Group (VOD) 131.78p 1.24%
Rolls-Royce Holdings (RR.) 131.75p 1.15%
Diageo (DGE) 2,966.00p 1.14%
GlaxoSmithKline (GSK) 1,400.80p 1.07%
Sage Group (SGE) 579.80p 1.05%

FTSE 100 - Fallers

Berkeley Group Holdings (The) (BKG) 4,483.00p -5.90%
Persimmon (PSN) 2,727.00p -4.92%
Barratt Developments (BDEV) 621.60p -4.90%
Lloyds Banking Group (LLOY) 37.23p -4.60%
Land Securities Group (LAND) 698.00p -3.80%
Legal & General Group (LGEN) 251.80p -3.75%
BT Group (BT.A) 130.50p -3.26%
NATWEST GROUP PLC ORD 100P (NWG) 165.40p -3.10%
British Land Company (BLND) 494.30p -3.08%
Associated British Foods (ABF) 2,291.00p -2.92%

FTSE 250 - Risers

Micro Focus International (MCRO) 493.70p 14.65%
TUI AG Reg Shs (DI) (TUI) 476.90p 2.65%
Cineworld Group (CINE) 63.58p 2.45%
Games Workshop Group (GAW) 10,100.00p 2.28%
Carnival (CCL) 1,516.00p 1.85%
Syncona Limited NPV (SYNC) 264.50p 1.73%
Pershing Square Holdings Ltd NPV (PSH) 2,530.00p 1.61%
AO World (AO.) 356.50p 1.42%
Murray International Trust (MYI) 1,144.00p 1.42%
Euromoney Institutional Investor (ERM) 1,076.00p 1.32%

FTSE 250 - Fallers

Countryside Properties (CSP) 427.80p -4.93%
Vistry Group (VTY) 873.00p -4.54%
Bellway (BWY) 2,849.00p -4.40%
Redrow (RDW) 533.00p -4.22%
Paragon Banking Group (PAG) 449.20p -3.93%
ITV (ITV) 98.24p -3.69%
Marks & Spencer Group (MKS) 137.25p -3.68%
Crest Nicholson Holdings (CRST) 308.00p -3.63%
Mitchells & Butlers (MAB) 239.00p -3.43%
Great Portland Estates (GPOR) 648.00p -3.28%