LONDON MARKETS: FTSE 100 Continues Record Run, Rising For 14th Day In A Row
January 13 2017 - 4:34AM
Dow Jones News
By Sara Sjolin, MarketWatch
Drugmakers recover after Trump-fueled selloff
U.K. stocks gained for a 14th straight day on Friday, extending
their record winning run as the weaker pound spurred investors to
buy into British multinationals.
The FTSE 100 index rose 0.5% to 7,327.85, on track for another
record close. If it ends higher on Friday, it'll mark a 12th
consecutive all-time closing high, the longest such streak
ever.
For the week, the London benchmark was set for a 1.6% gain. That
would be its sixth straight weekly advance.
Sterling pressure: The index ended marginally higher on Thursday
(http://www.marketwatch.com/story/ftse-100-falls-after-retailers-reveal-christmas-trading-figures-2017-01-12)
after the pound was driven lower. The resumed selling pressure on
sterling followed media reports that Prime Minister Theresa May
will deliver a landmark speech Tuesday
(http://www.marketwatch.com/story/uk-pm-theresa-may-to-deliver-major-brexit-speech-tuesday-2017-01-12)
on plans for negotiating the U.K.'s exit from the European
Union.
Critics have accused May
(https://twitter.com/TheEconomist/status/817110825206956032) of
being unclear and not providing details on Brexit efforts. But the
British leader has denied the government's approach
(http://www.marketwatch.com/story/dollar-kicks-off-week-higher-still-juiced-by-jobs-data-2017-01-09)
is "muddled".
The pound struggled to recover on Friday, with sterling buying
$1.2175 compared with $1.2163 late Thursday in New York and
fetching 1.1456 euros vs. $1.1462 on Thursday.
A weaker pound helps lift FTSE 100 companies, as it tends to aid
multinationals that generate the bulk of their revenue outside of
Britain.
"Sterling is back under pressure following the announcement that
Prime Minister Theresa May is to make a major speech on Brexit and
promoting a 'Global Britain'. Markets tend to recoil against
sterling any time the prospect of a 'hard Brexit' increases," said
Richard Perry, markets analyst at Hantec Markets, in a note.
A so-called hard Brexit refers to a scenario where the U.K.
regains control of its borders, but gives up access to the EU's
single market. Economists fear losing access to the single market
-- the U.K.'s biggest export market -- will hurt domestic business
activity, and particularly the financial sector.
Movers and shakers: Drugmakers rebounded, having fallen after
U.S. President-elect Donald Trump's press conference on Wednesday.
Trump hinted at forthcoming legislation
(http://www.marketwatch.com/story/biotech-etfs-fall-as-trump-says-more-bidding-needed-on-drugs-2017-01-11)
that could erode the sector's profitability.
Shares of Shire PLC (SHPG) (SHPG) climbed 1.5%, Hikma
Pharmaceuticals PLC (HIK.LN) gained 1.4%, and AstraZeneca PLC
(AZN.LN) (AZN.LN) added 1.1%.
On a more downbeat note, precious-metals miners declined as gold
and silver prices moved lower. Shares of Fresnillo PLC (FRES.LN)
gave up 2.3%, and Randgold Resources Ltd. (RRS.LN) (RRS.LN) fell
0.7%.
(END) Dow Jones Newswires
January 13, 2017 04:19 ET (09:19 GMT)
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