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FTSE 100 Rallies As US Voters Give Mixed Verdict On Trump

U.K. stocks were sharply higher in early trade Wednesday as investors digested the U.S. mid-term election results and looked ahead to the Federal Reserve's monetary policy announcement, due on Thursday.

The U.S. election results came in line with expectations, with Democrats seizing the House majority from President Donald Trump's Republican Party while Republicans retained control of the Senate.

The benchmark FTSE 100 was up 88 points or 1.25 percent at 7,128 in opening deals after declining 0.9 percent the previous day.

The British pound rose for the third straight session after reports that a Brexit deal could be agreed by the end of November.

Infrastructure group Balfour Beatty climbed 2 percent after it secured a place on two major highway projects.

Redrow was little changed. In its trading update ahead of Annual General Meeting, the housebuilder said that it has traded in line with expectations for the first 18 weeks of the current financial year.

Fellow homebuilder Persimmon advanced 1.3 percent. Jeff Fairburn, Group Chief Executive, has been asked to leave the company after a row over his £75m pay award.

Retailer Marks & Spencer Group tumbled 3.4 percent. The company has warned of challenging trading conditions for fiscal 2019 after reporting a 7.1 percent rise in first-half profit before tax.

ITV shares slumped 4 percent. The media firm has warned of a softening in advertizing revenue in the final three months of the year.

In economic news, U.K house price inflation eased sharply in October to its lowest level since March 2013, survey data from IHS Markit and Lloyds Banking Group unit Halifax showed.

The Halifax house price index rose 1.5 percent year-on-year in the three months to October, which was sharply slower than the 2.5 percent increase in September. Economists had forecast a 1.3 percent climb.

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