Lower pound lifts FTSE 100 as Brexit talks stall

London's exporter-heavy FTSE 100 edged higher on Thursday as the absence of a Brexit trade deal pressured the pound, while concerns around the economic damage from the COVID-19 pandemic kept the mid-cap index subdued.

London's exporter-heavy FTSE 100 edged higher on Thursday as the absence of a Brexit trade deal pressured the pound, while concerns around the economic damage from the COVID-19 pandemic kept the mid-cap index subdued. The FTSE 100 was up 0.5% by 0802 GMT, led by consumer staples, materials and energy stocks.

Prime Minister Boris Johnson and the European Union's chief executive gave themselves until the end of the weekend to seal a new trade pact after failing to overcome persistent rifts over dinner on Wednesday. The mid-cap index rose just 0.3%, as data showed Britain's economic recovery almost ground to a halt in October due to a surge in coronavirus cases.

In company news, Mike Ashley's British sportswear group Frasers jumped 6.5% to the top of the FTSE 250 after reporting a 25% rise in first-half core earnings.