Land Securities and British Land were the main beneficiaries of the gains, closing 6% and 5.4% higher on the day.The second tier FTSE 250 Index closed 1.3% up.Neil Wilson, chief market analyst at Markets.com, said of the reaction to the Bloomberg claim:"These kind of reports expose just how vulnerable sterling is to headline risk.
"At present these are unconfirmed reports and need to be verified - we just have BBG citing two people with knowledge of the talks. "If a draft deal can be achieved we would expect another spike north to $1.30 on cable in very short order, and potentially $1.3170 could be targeted. It could get very choppy now.
"However, as we consistently stress, there is yet a lot to overcome even if a deal is agreed - most importantly parliament would need to back the agreement and this is far from assured."