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Home>UPDATE: FTSE 100 gets a lift from supermarket stocks, softer pound

UPDATE: FTSE 100 gets a lift from supermarket stocks, softer pound

UPDATE: FTSE 100 gets a lift from supermarket stocks, softer pound

09/19/2017

By Carla Mozee, MarketWatch

U.K. stocks rose Tuesday, aided by gains for supermarket shares and a pullback from around 15-month highs in the pound against the U.S. dollar.

The FTSE 100 index rose 0.3% to close at 7,275.25, adding to a 0.5% rise on Monday (http://www.marketwatch.com/story/ftse-100-reaches-for-first-gain-in-5-sessions-as-geopolitical-tensions-ease-2017-09-18), when the benchmark breaking a four-session losing streak.

Investors will turn their attention to the U.S. Federal Reserve, which was set to begin its two-day policy meeting on Tuesday. The Fed is widely expected on Wednesday to say it will start reducing its $4.5 trillion portfolio of government securities.

The FTSE 100 pushed higher Tuesday as the pound struggled to stay above $1.35. The pound in recent sessions has hit its highest since last year's Brexit vote on expectations the Bank of England is preparing for a rate hike.

Read:HSBC reverses bearish pound view after BOE rate hints (http://www.marketwatch.com/story/we-were-wrong-hsbc-reverses-bearish-pound-view-after-boe-rate-hints-2017-09-18)

Pound strength can hurt earnings made overseas by multinational companies, or so-called dollar earners. Sterling bought $1.3510 around the time of the European close, after trading as high as $1.3553 and as low as $1.3468 earlier in the day.

The U.S. dollar on Tuesday was also swinging between gains and losses ahead of the Fed decision.

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