U.K. Shares Buck the Trend, Rising on Pound as World Stocks Drop

Brexit Puts Drag on U.K. Homebuilders

Britain’s shares climbed, defying losses in most of the other equity markets, as the pound sank to its lowest level since 1985.

The FTSE 100 Index rose 0.4 percent at the close of trading in London, reversing a drop of as much as 0.8 percent. The equities gauge is up 3.3 percent since the June 23 Brexit vote and is the best performer among major western-European gauges this year despite a slide on Monday. Lenders briefly erased declines after Bank of England Governor Mark Carney lowered capital requirements.

Royal Dutch Shell Plc, GlaxoSmithKline Plc and British American Tobacco Plc climbed more than 2.6 percent, leading leading gains in the FTSE 100.

Standard Life Plc lost 5.2 percent after Standard Life Investments suspended trading in its 2.9 billion-pound ($3.9 billion) U.K. Real Estate fund. Aviva Plc dropped 3.9 percent after its Aviva Investors froze a 1.8 billion-pound real estate investment fund. Legal & General Group Plc tumbled 7.1 percent after Jefferies Group lowered its rating on the insurer on concern over its dividend. Housebuilders continued their declines.

The broader FTSE All-Share Index was little changed, while Ireland’s ISEQ Index slipped for a second day. The regional Stoxx Europe 600 Index lost 1.7 percent.

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