FTSE 100 hits 10-month high on weaker sterling; Telford soars

Britain's main index hit a 10-month high on Wednesday as comments from the Bank of England raised hopes of an interest rate cut and hurt the pound, while AIM-listed Telford Homes surged after a buyout offer. The FTSE 100 rose 0.3%, boosted by shares of companies that book a major chunk of their revenue from overseas such as BAT and AstraZeneca. The FTSE 250 added 0.1% by 0708 GMT.

The pound struggled for traction after Bank of England Governor Mark Carney said on Tuesday that the global trade war and a 'no-deal' Brexit may warrant a near-term policy response, which markets interpreted as a dovish signal. Supermarket group Sainsbury's was the biggest blue-chip loser as it shed 2% after its underlying sales declined for a third consecutive quarter, hurt by weak clothing and general merchandise markets. Telford Homes climbed 12.4% to 354 pence after U.S. real estate firm CBRE said it would buy the British residential property developer for 350 pence a share in cash.