• / Free eNewsletters & Magazine
  • / My Account
Home>LONDON MARKETS: FTSE 100 Rises As Pound 'falls Out Bed' On

LONDON MARKETS: FTSE 100 Rises As Pound 'falls Out Bed' On

LONDON MARKETS: FTSE 100 Rises As Pound 'falls Out Bed' On

10/06/2017

By Sara Sjolin, MarketWatch

Sterling set for worst week since flash crash a year ago

U.K. stocks headed higher on Friday, boosted by a weaker pound, which slid further on growing speculation that the government will call a snap election.

The FTSE 100 index rose 0.1% to 7,517.55, rising for a seventh session in the past eight. For the week, the London benchmark was on track for a 1.9% gain, which would be its biggest weekly advance since early August.

Meanwhile, the pound slumped to $1.3078, down from $1.3118 late Thursday in New York. Sterling is now set for a 2.5% weekly tumble, its biggest since the week ending Oct. 7, 2016, when the currency lost 4.1% against the dollar after a flash crash.

Against the euro, the pound fell to EUR1.1183, down from EUR1.1202 on Thursday.

"The British pound has fallen out of bed since the end of the Conservative party conference. Luckily for U.K. investors, the pound's negative correlation with returns on blue-chip stocks is going strong," said Jasper Lawler, head of research at London Capital Group, in a note.

He noted that the sterling slump isn't just a reflection of dollar strength, as the fall against the euro indicates the issues are more local.

©2017 Morningstar Advisor. All right reserved.