FTSE 100 Storms Ahead as Weak Pound, Deals Fuel U.K. Index Gains

(Bloomberg) -- London’s blue-chip stock index is having its best day since January as exporters get a lift from a weaker pound amid mounting concern over the possibility of a no-deal Brexit.

The FTSE 100 gained as much as 2.1% to 7,709.59, its highest since Aug. 10 last year, as the pound slid against the dollar after members of Prime Minister Boris Johnson’s cabinet pledged tough stances on the divorce proceedings. The index’s gain was the third-biggest in the world, and exceeded a 0.2% advance in the Stoxx Europe 600.

About 40% of the FTSE 100’s revenue is earned in dollars or dollar-linked currencies, according to UBS estimates, meaning the gauge generally has an inverse relationship with sterling.

Deals also played a part in the index’s strength, with its two biggest gainers being Just Eat Plc on news of a 5 billion-pound ($6.2 billion) bid from Takeaway.com NV, and LSE Plc on a planned $27 billion takeover of Refinitiv.

To contact the reporter on this story: Joe Easton in London at jeaston7@bloomberg.net

To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Paul Jarvis, Phil Serafino

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