FTSE and sterling rebound from lows caused by Brexit deal vote delay

Callum Keown
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Markets Nervous Amid Fears
The FTSE 100 and the pound have rebounded this morning as UK wages rose and investors looked for bargains (Source: Getty)

The FTSE 100 has rebounded this morning after yesterday's decision to delay the Brexit deal vote sent the index tumbling.

The blue chip index has risen 1.2 per cent this morning to 6,800 points – as high as it was before the vote was delayed – as markets began to stabilise after a tumultuous start to the week.

Mining and oil sectors led the way with gains of more than two per cent for Anglo American, Antofagasta, Glencore and Rio Tinto.

Sterling, which sunk to 20-month lows on Monday in the aftermath of Theresa May's decision to pull the vote, has also rebounded, climbing 0.5 per cent to $1.262.

Figures showing UK wages were now growing at their fastest rate in a decade also helped boost the pound.

UK markets have started to bounce bank after yesterday's Brexit calamity,” AJ Bell investment director Russ Mould said.

“The fact that markets are actually moving forward shows that investors are perhaps scouting around for bargains amid this year's turmoil rather than sitting on their hands in fear.”

Spreadex analyst Connor Campbell said: “An unexpected surge in UK wage growth allowed the pound to stick its fingers in its ears and continue its precarious rebound.”

WPP was the biggest riser in morning trading as shares jumped seven per cent as the advertising giant unveiled a new streamlining strategy and plans to cut 3,500 jobs.

The company said it would spend £300m over the next three years as it simplifies the business, aiming to make annual savings of £275m by 2021.

Standard Life Aberdeen were the sharpest fallers, dropping 2.3 per cent after it was announced that senior independent director Kevin Perry will step down and move to Royal London.

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