FTSE edges up as pound dips on Brexit deadlock

The UK’s top share index edged up on Tuesday, outperforming European peers as sterling slid in the wake of Prime Minister Theresa May’s failure to clinch a deal to open post-Brexit free trade talks with the European Union. 

The blue chip FTSE 100 index was up 0.2 percent at 7,351.38 points by 0953 GMT, while the pan-European Stoxx retreated by the same extent into negative territory. 

The fall in sterling since the June 2016 Brexit vote has given an accounting boost to UK blue chips that generate revenues in dollars, and a weak pound typically supports the FTSE.

Supermarkets posted by far the best performance of UK blue chips. with Tesco and Sainsbury rising 3 percent and 2.4 percent. 

A number of miners were in negative territory as base metals slipped into negative territory, with investors locking in profits on recent gains in nickel and copper.

Standard Chartered, with a 1.4 percent rise, was the top gainer among financials after JP Morgan raised its rating and included the stock in its EU bank top picks list. 

In the same sector, British lender Provident Financial shares collapsed 13 percent after the UK’s financial watchdog opened an investigation into Moneybarn, its car and van financing arm.

British movie theatre operator Cineworld Group Plc lost 3.7 percent after it said it reached an agreement to buy U.S. peer Regal Entertainment Group RGC.N for $3.6 billion.