LONDON MARKETS: FTSE 100 Ends At 2 1/2 -month Peak As Pound Weakens To One-year Low
August 08 2018 - 12:52PM
Dow Jones News
By Mark DeCambre, MarketWatch
British stock benchmark notches fourth straight winning
session
The U.K.'s main stock index closed higher for a fourth session
in a row Wednesday as the benchmark scored 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 are markets performing
The FTSE 100 rose 0.8% at 7,776.65, after rising 0.7% in the
previous session. The British equity gauge's fourth straight gain
pushed it to the highest close since May 24, according to FactSet
data.
The British pound dropped to a level not seen since August last
year
(http://www.marketwatch.com/story/british-pound-hits-one-year-low-trade-war-evident-in-china-data-2018-08-08).
Sterling last bought $1.2874, down from $1.2938 late Tuesday in New
York.
The British blue-chip gauge is up about 1.3% 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 finished the session down 7.1%
after the betting company cut its 2018 view
(http://www.marketwatch.com/story/paddy-power-betfair-cuts-2018-view-2018-08-08)
in results out Wednesday.
Glencore PLC's stock (GLEN.LN) gained less than 0.1%. The Swiss
mining-and-trading giant posted record first-half results, but
missed on pretax earnings
(http://www.marketwatch.com/story/glencore-posts-record-profit-as-commodities-rise-2018-08-08).
Gainers:
Shares of Prudential PLC(PRU.LN) rose 2.6%, after the insurer
reported a 9% rise in interim operating profit
(http://www.marketwatch.com/story/prudential-asia-profit-grows-demerger-on-track-2018-08-08),
boosted by Asian growth.
Heavyweight banking group HSBC Holdings PLC(HSBA.LN) rose 1%,
while Standard Life Aberdeen PLC(SLA.LN) shares added 1.9%.
Hargreaves Lansdown PLC's stock (HL.LN) rose 3.2%.
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 12:37 ET (16:37 GMT)
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