LONDON MARKETS: Pound Rallies And FTSE 100 Struggles As Johnson Visits Dublin

By Steve Goldstein, MarketWatch

Mildly encouraging signals from U.K. Prime Minister Boris Johnson on a visit to Dublin on Monday lifted the British pound and weakened the top U.K. stock market index.

The pound rose to $1.2338 in wake of a press gathering with Johnson and Irish Prime Minister Leo Varadkar, where the U.K. prime minister said a deal on the Irish border question can be secured in time to enable a smooth British departure. He's expected to lose a vote in Parliament on holding a general election unless a no-deal Brexit is pushed beyond January, which Johnson has vowed to resist.

Over the weekend, another member of the Cabinet (http://www.marketwatch.com/story/uk-cabinet-minister-quits-says-boris-johnson-making-no-effort-to-reach-brexit-deal-2019-09-08), Amber Rudd, resigned.

There also was positive economic data, with U.K. GDP rising 0.3% in July, which was stronger than the 0.1% expected. Industrial production also was better than forecast.

The FTSE 100 tends to weaken whenever the pound accelerates, and that was the case again as it dropped 0.28% to 7261.50.

Of companies in focus, Associated British Foods (ABF.LN) fell 3% after it kept its full-year outlook, saying adjusted EPS is expected to be in line with last year. It reported "strong" performance in its Primark and Grocery units but a decline in AB Sugar.

Intu Properties (INTU.LN) rose 11% as the Sunday Times reported that Orion Capital Managers was in the early stages of seeking partners for a buyout.

(END) Dow Jones Newswires

September 09, 2019 05:59 ET (09:59 GMT)

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