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UPDATE 1-UK stocks retreat as market waits for Brexit deal update

Published 16/10/2019, 09:26
© Reuters.  UPDATE 1-UK stocks retreat as market waits for Brexit deal update
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* FTSE 100 flat, FTSE 250 down 0.9%

* Markets eye details of Brexit negotiations

* Housebuilders among biggest blue-chip losers

* Royal Mail skids after union votes for nationwide strike

* Neil Woodford's listed fund hits fresh record low

(Adds news items, analyst comment, updates share prices)

By Shashwat Awasthi

Oct 16 (Reuters) - London's domestically focussed mid-cap

index slipped on Wednesday with investors looking for

confirmation that a Brexit deal was really in the offing.

The FTSE 250 .FTMC , which had rallied more than 3% since

last week on hopes that Britain could clinch a timely divorce

deal, fell 0.9%. Traders are eyeing a crunch summit this week

after last-ditch talks between London and the European Union.

The blue-chip FTSE 100 .FTSE was roughly flat as gains in

exporter firms like Reckitt RB.L , due to a weaker pound, were

offset by a drop in housebuilders after Barratt pointed to signs

of weakening future revenue.

Barratt BDEV.L , Britain's largest housebuilder, gave up

3.7%, while peers Persimmon PSN.L and Taylor Wimpey TW.L

lost around 3% each.

The sector .FTNMX3720 , which is sensitive to updates that

can impact consumer spending, has also seen volatile trading in

recent weeks amid a flurry of Brexit headlines.

Officials involved in eleventh hour negotiations overnight

said that differences over the terms of the split had narrowed

significantly. That followed a Bloomberg report that a draft deal was close

to being sealed, which spurred a rally in firms more

domestically exposed, including banks such as Lloyds LLOY.L

and RBS RBS.L , and led mid-caps to a more than one-year high.

"The permutations are labyrinthine, but financial markets

are not hanging around to await the details," Oanda analyst

Jeffrey Halley said, though he warned that market participants

could yet be left disappointed.

Uncertainty remains whether a deal will be sealed at an EU

summit on Thursday and Friday, and if Britain's minority

government can get it through parliament.

News-driven moves saw AIM-listed ASOS ASOS.L , a victim of

multiple profit warnings this year, jump 14% after the online

fashion retailer said it had made strides in resolving

warehousing issues that ate into its annual profit. In contrast, clothing retailer Next NXT.L skid 2.5% after

its CEO sold more than 10 million pounds worth of shares, while

mid-cap Royal Mail RMG.L fell 6% after a major union voted in

favour of a nationwide strike. Shares of Woodford Patient Capital Trust WPCT.L sank 6.4%

to a fresh record low, a day after embattled money manager Neil

Woodford resigned as its investment manager.

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