(Sharecast News) - London stocks nudged higher in early trade on Thursday as sterling gained amid expectations that a Brexit deal will be announced later in the day, on what felt like an otherwise sparkle-free, mostly Tier 4 Christmas Eve.
At 0850 GMT, the FTSE 100 was up 0.2% at 6,507.40, while the pound was 0.6% higher against the dollar at 1.3575 and 0.5% firmer versus the euro at 1.1123 amid reports the UK and EU have finally agreed on a Brexit trade deal, four and a half years after Britain chose to leave the European Union and just days before the transition period is due to end.

A stronger pound tends to hold back the top-flight index as around 70% of its constituents derive most of their earnings from overseas.

The domestically-focused FTSE 250 fared better, trading up 0.8% at 20,452.60.

Stock markets in London will be open for just a half day as it's Christmas Eve, but a statement from Prime Minister Boris Johnson on the deal is expected before the close.

CMC Markets analyst David Madden said: "The speculation is that a deal will be announced." However, he also cautioned that "the health emergency continues to be a problem".

"A second strain of Covid-19 was identified in the UK and that could well pose a problem in weeks ahead. It is concerning that several countries have identified the new variant of the virus."

In equity markets, banks and housebuilders rallied on Brexit hopes, with Lloyds, Barclays, NatWest, Berkeley, Persimmon and Barratt all in the black.

British Airways owner IAG was also on the front foot, along with travel company Tui, cruise operator Carnival, budget airline easyJet, pub chain Wetherspoons and Cineworld.

Market Movers

FTSE 100 (UKX) 6,507.40 0.18%
FTSE 250 (MCX) 20,452.60 0.76%
techMARK (TASX) 4,091.69 0.49%

FTSE 100 - Risers

Lloyds Banking Group (LLOY) 39.07p 5.23%
M&G (MNG) 209.20p 4.08%
Berkeley Group Holdings (The) (BKG) 4,800.00p 3.49%
International Consolidated Airlines Group SA (CDI) (IAG) 167.35p 3.43%
Barclays (BARC) 156.98p 3.40%
Persimmon (PSN) 2,919.00p 3.18%
Barratt Developments (BDEV) 692.80p 2.49%
NATWEST GROUP PLC ORD 100P (NWG) 170.95p 2.43%
BT Group (BT.A) 139.65p 2.05%
Legal & General Group (LGEN) 265.10p 2.04%

FTSE 100 - Fallers

Experian (EXPN) 2,709.00p -2.52%
Rentokil Initial (RTO) 503.20p -1.45%
Halma (HLMA) 2,396.00p -1.28%
Compass Group (CPG) 1,379.50p -1.22%
Aveva Group (AVV) 3,171.00p -1.18%
Anglo American (AAL) 2,435.50p -1.08%
Diageo (DGE) 2,903.50p -0.99%
Croda International (CRDA) 6,356.00p -0.94%
Bunzl (BNZL) 2,411.00p -0.86%
Fresnillo (FRES) 1,127.50p -0.84%

FTSE 250 - Risers

Aston Martin Lagonda Global Holdings (AML) 1,814.20p 6.02%
Cairn Energy (CNE) 212.60p 4.94%
Carnival (CCL) 1,406.50p 4.88%
TUI AG Reg Shs (DI) (TUI) 446.90p 4.78%
Wetherspoon (J.D.) (JDW) 1,151.00p 4.45%
Jupiter Fund Management (JUP) 296.60p 4.36%
BlackRock Smaller Companies Trust (BRSC) 1,698.00p 3.66%
Trainline (TRN) 457.80p 3.62%
Henderson Smaller Companies Inv Trust (HSL) 1,044.00p 3.57%
easyJet (EZJ) 858.80p 3.22%

FTSE 250 - Fallers

Grainger (GRI) 277.60p -2.80%
Sirius Real Estate Ltd. (SRE) 92.20p -2.74%
Energean (ENOG) 683.40p -1.95%
Mediclinic International (MDC) 278.00p -1.84%
Calisen (CLSN) 254.50p -1.74%
Fidelity European Values (FEV) 276.00p -1.25%
Big Yellow Group (BYG) 1,103.00p -1.08%
Homeserve (HSV) 1,061.00p -0.93%
Hochschild Mining (HOC) 205.80p -0.87%
Derwent London (DLN) 3,072.00p -0.84%