London close: Sterling advance saps Footsie strength

(ShareCast News) - Stocks closed lower on Thursday, surrendering to pound strength amid optimism over recent progress in Brexit talks and following a report that Britain is close to agreeing a deal over the Northern Ireland border.The FTSE 100 was down 0.90% to 7,326.67, while the pound was up 0.2% against the euro at 1.1341 and 0.7% firmer against the dollar at 1.3502.European markets also closed lower with the DAX down 0.29% to 13,023.98, the CAC40 0.47% weaker at 5,372.79 and the IBEX35 slipping 0.55% to 10,211.00.Prime Minister Theresa May - who has until Monday to make a fresh offer on key divorce issues if the UK is to move ahead to the next step in Brexit talks - insisted the UK is still negotiating with the EU over a divorce payout following reports of a £50bn settlement.Oanda analyst Craig Erlam said: "The pound hit a two-month high against the dollar on Wednesday and has now reached a similar high against the euro. The pair may find support around 0.8750 having done so on the last two occasions in September and earlier this month. A break below here could be quite a bearish signal for the pair, with next support coming around 0.8650."Meanwhile, oil prices ticked lower, as Thursday's OPEC meeting came to a close in Vienna, amid reports that ministers have agreed the current deal should be extended until the end of next year. West Texas Intermediate was 0.02% weaker at $57.28 a barrel and Brent crude was down 1.93% to $61.89.Investors were also digesting the latest survey from Nationwide, which showed annual UK house price growth was stable in November.House prices grew by 2.5% this month, unchanged from November last year and missing expectations for a 2.7% increase. On the month, prices were 0.1% higher, down from a 0.2% rise in October and below expectations for it to remain unchanged.Meanwhile, the latest survey from GfK showed UK consumer confidence waned more than expected this month.GfK's consumer confidence index slipped to -12, the same level as the month after the Brexit vote, down from -10 the month before and slightly worse than the City forecasts of -11.In corporate news, BAE Systems was in the black after agreeing to pay more into its pension schemes to deal with a £2.1bn deficit by the year 2026.The defence company said it would increase payments into the schemes from about £205m a year to £220m from 2018 with payments rising in line with group dividends.Life insurer Aviva rallied as it upped its long-term earnings and dividend guidance and said it has £3bn of excess cash that will be used to pay down £0.9bn debt next year, as well as making bolt-on acquisitions and funding shareholder returns over 2018 and 2019.Mediclinic was trading higher after a double upgrade to 'buy' from Jefferies, which said it expects mid-term return on invested capital to improve more than the market is forecasting.Pub operator Marston's surged after it posted a 10% jump in full-year revenue and a 3% rise in pre-tax profit.Go-Ahead fell despite saying the rail operator maintained its full-year expectations as it said revenues from its train services have risen in recent months.On the downside, GlaxoSmithKline fell as it announced that ViiV Healthcare, the global specialist HIV company it majority owns with Pfizer and Shionogi as shareholders, has confirmed the start of HPTN 084 - a phase III study to evaluate long-acting cabotegravir for the prevention of HIV infection in sexually active women.TP ICAP rose after saying it has acquired independent agency broker Coex Partners for an initial payment of £7.1m, with performance-related payments possible at various dates over the next four years.Pub operator Greene King fell sharply after reporting an 8% drop in interim underlying pre-tax profit, while residential landlord Grainger declined even as it posted a 2% increase in full-year pre-tax profit.Oil services group Lamprell gushed lower after warning that earnings for 2017 are likely to be "materially below" current market expectations as its East Anglia offshore windfarm project is expected to make a "significant" loss.Bellway, Telecom Plus, Johnson Matthey, IAG and Land Securities were all weaker as their stock went ex-dividend.Market MoversFTSE 100 (UKX) 7,326.67 -0.90%FTSE 250 (MCX) 19,952.89 -0.53%techMARK (TASX) 3,434.39 -0.82%FTSE 100 - RisersMediclinic International (MDC) 565.50p 4.72%BT Group (BT.A) 260.80p 2.11%Convatec Group (CTEC) 194.00p 1.52%BAE Systems (BA.) 552.00p 1.47%TUI AG Reg Shs (DI) (TUI) 1,364.00p 1.34%United Utilities Group (UU.) 820.50p 1.30%Centrica (CNA) 144.60p 1.26%Worldpay Group (WPG) 422.00p 0.96%ITV (ITV) 159.90p 0.95%Standard Life Aberdeen (SLA) 430.20p 0.94%FTSE 100 - FallersAstraZeneca (AZN) 4,777.00p -2.51%British American Tobacco (BATS) 4,689.00p -2.35%Prudential (PRU) 1,859.50p -2.16%GlaxoSmithKline (GSK) 1,280.00p -2.14%Associated British Foods (ABF) 2,948.00p -2.12%Randgold Resources Ltd. (RRS) 6,775.00p -2.02%Tesco (TSCO) 194.05p -1.99%CRH (CRH) 2,566.00p -1.99%Persimmon (PSN) 2,540.00p -1.97%Carnival (CCL) 4,766.00p -1.91%FTSE 250 - RisersMarston's (MARS) 115.00p 9.73%TalkTalk Telecom Group (TALK) 153.10p 5.37%RPC Group (RPC) 924.00p 3.30%Nex Group (NXG) 593.50p 2.95%Vectura Group (VEC) 96.75p 2.93%Brewin Dolphin Holdings (BRW) 361.20p 2.76%P2P Global Investments (P2P) 808.00p 2.60%TBC Bank Group (TBCG) 1,578.00p 2.53%Mitchells & Butlers (MAB) 267.10p 2.49%Pets at Home Group (PETS) 175.10p 2.47%FTSE 250 - FallersSophos Group (SOPH) 568.50p -5.80%Capita (CPI) 466.50p -5.72%Evraz (EVR) 286.30p -4.53%Vedanta Resources (VED) 692.50p -4.15%Equiniti Group (EQN) 293.80p -3.86%Hochschild Mining (HOC) 228.35p -3.86%Petrofac Ltd. (PFC) 420.60p -3.71%Greene King (GNK) 520.00p -3.70%Restaurant Group (RTN) 286.70p -3.69%Hill & Smith Holdings (HILS) 1,280.00p -3.54%