Latest News

UK News

Click Here to read UK News

Forex News

Click Here to read Forex News

Market News

Click Here to read Market News

Irish News
UK News
UPDATE 2-UK stocks recoil as Brexit optimism fades; buyout spurs Sophos
Published at 14/10/2019 at 16:52

* FTSE 100 down 0.5%, FTSE 250 down 0.6%

* UK indexes ease after Friday's rally

* Sophos jumps on buyout deal, leads peer Avast higher

* Royal Mail drops as threat of Christmas strike looms

(Adds details, quotes, graphic, updates to closing prices)

By Shashwat Awasthi

Oct 14 (Reuters) - London-listed companies with exposure to the domestic economy retreated on Monday as last week's euphoric optimism gave way to doubts over whether a timely Brexit deal could be clinched, while cybersecurity firm Sophos surged 36% after a buyout offer.

The FTSE 250 ended slightly off the day's lows but still shed 0.6%, handing back part of the more than 4% gain it had recorded in the previous session which was its best in nearly a decade.

Britain and the European Union said over the weekend that a lot more work would be needed to secure a Brexit agreement.

JP Morgan's UK domestic plays index , tracking about 30 UK stocks that make all or most of their revenue at home, pulled back nearly 1%. It had jumped almost 8% on Friday, its best day since the basket was created nearly three years ago.

Blue-chip banks like Lloyds and Barclays and housebuilders skidded, dragging the FTSE 100

0.5% lower.

"On balance I feel the situation here is still fairly unpredictable... I think it's far from clear we have a pathway yet," said Paul O'Connor, head of the UK-based Multi-Asset Team at Janus Henderson.

The main index was also hurt by a drop in miners

after disappointing imports and exports data from top metals consumer China.

Mid-cap Sophos Group scaled its highest level in more than a year at 586.8 pence, after private equity firm Thoma Bravo said it would take the company private in a 583 pence per share deal.

Shares of its peer Avast also rose 2.6%.

Sentiment around the U.S.-China trade situation also tempered somewhat after a rally in global stocks last week on signs of progress in negotiations that culminated with President Donald Trump outlining the first phase of a deal and suspending a threatened tariff hike.

"We welcome it but it's a very fragile truce. The fact that it wasn't written down is the most important thing. It shows what a challenge it is to converge on a hard agreement," O'Connor said.

Ad firm WPP , which lost 4% in the previous session after French rival Publicis cut its sales view for the second time, ended 2.8% higher.

Royal Mail , relegated to the FTSE 250 earlier this year, slipped 2.4% after a report

that the company was facing the threat of an employee strike over Christmas.

Car dealership chain Pendragon , whose stock has nearly halved in value this year, climbed 10%. Automotive News reported

Pendragon had named interim Executive Chairman and former AutoNation COO Bill Berman as interim CEO.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Share performance of Sophos and Avast vs FTSE 250 since 2018


(Reporting by Shashwat Awasthi in Bengaluru, additional reporting by Josephine Mason in London; Editing by Bernard Orr and Ed Osmond)

((; within UK: +1 646 223 3403; outside UK: +91 80 61822606, +91 80 37962606;))

(( For related prices, Reuters users may click on - *

UK stock report

FTSE index:

techMARK 100 index: FTSE futures:

Gilt futures: Smallcap index:

FTSE 250 index: FTSE 350 index:

Market digest: Top 10 by vol:

Top price gainers: Top % gainers:

Top price losers: Top % losers:

* For related news, click on - *

UK hot stocks: [HOT and GB] Wall Street:

Gilts report: Euro bond report

Pan European stock report:

Tokyo stocks: HK stocks:

Sterling report: Dollar report:

* For company prices, click on - *

Company directory: By sector:

* For pan-European market data, click on - *

European Equities speed guide................

FTSE Eurotop 300 index...........................

DJ STOXX index...................................

Top 10 STOXX sectors........................

Top 10 EUROSTOXX sectors...................

Top 10 Eurotop 300 sectors..................

Top 25 European pct gainers....................

Top 25 European pct losers..................... ))