Lingering hopes of Brexit deal lift UK stocks

Britain's domestically exposed stocks rallied on Tuesday amid hopes that a Brexit deal could be clinched before Oct. 31, while Neil Woodford's listed fund sank to a record low after a decision to wind up the money manager's suspended fund. The FTSE 250, which had surged more than 4% last Friday after positive Brexit signals from Ireland, added 0.9% by 0705 GMT. Britain and the European Union are set for crunch Brexit talks at a summit on Thursday and Friday.

The FTSE 100 rose 0.3%, helped by UK-focussed banks Lloyds and RBS, and stocks considered most sensitive to any Brexit fallout such as housebuilders. Woodford Patient Capital Trust tumbled 8% after the corporate director of Neil Woodford's suspended LF Woodford Equity Income Fund said the fund is to be wound up.