UKX FTSE 100 Index

By Mark DeCambre, MarketWatch

British stock benchmark set for highest close in 2 1/2 months, according to FactSet

The U.K.'s main stock index jumped on Wednesday as the benchmark got a boost from a weaker currency amid lingering concerns about the country's exit from Europe's trade bloc. Worries about so-called Brexit have persistently weighed on the pound and investors' psyche. However, sterling weakness has given some lift to companies doing business abroad.

How markets are performing

The FTSE 100 rose 0.8% at 7,779.15, after rising 0.7% in the previous session and putting the British equity gauge on track to post a fourth straight gain and its highest close since May 24, according to FactSet data.

The British pound dropped to a level not seen since August last year. Sterling last bought $1.2868, down from $1.2938 late Tuesday in New York.

The British blue-chip gauge is up about 1.6% so far this week, which would mark its best weekly gain since the period ended May 11.

A weaker currency can help the sale and revenue of British companies that do business abroad.

What's moving markets

Comments from trade minister Liam Fox over the weekend had sparked fresh worries about Brexit, after the official put the chance of a so-called "hard Brexit" at 60%, with no plan outlining the future relationship between the kingdom and the EU.

Meanwhile, on Tuesday, the U.S. completed a list of $16 billion in Chinese imports (http://www.marketwatch.com/story/us-to-impose-25-tariffs-on-16-billion-in-chinese-imports-starting-later-this-month-2018-08-07) that will be subject to 25% tariffs. That brings bring duties on Chinese imports, which are set to take effect Aug. 23, to $50 billion. And U.S. officials have said they are considering duties on $200 billion more.

Investors fear that an intensifying clash between the two largest economies in the world will rattled economies across the globe. Investors, however, have focused on the health of the U.K. economy which appears healthy.

Stocks in focus

Decliners:

Shares of Paddy Power Betfair PLC were down 6.4%,

Glencore PLC's stock (GLEN.LN) was off 1.6%.

Shares of Prudential PLC(PRU.LN) were up 2.1%.

Gainers:

Standard Life Aberdeen PLC(SLA.LN) shares added 1.9%.

Hargreaves Lansdown PLC's stock (HL.LN) rose 1.9%.

Don't miss:A top London startup's CEO flags the biggest Brexit threat to his industry (http://www.marketwatch.com/story/a-top-london-startups-ceo-flags-the-biggest-brexit-threat-to-his-industry-2018-08-06)

What are strategists saying?

"Concerns of a potential hard Brexit scenario have haunted investor attraction towards the Pound and have left the currency vulnerable to downside shocks," wrote Lukman Otunuga, research analyst at FXTM, in a Wednesday note.

(END) Dow Jones Newswires

August 08, 2018 08:41 ET (12:41 GMT)

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