FTSE hits fresh highs

Heading into the close, the FTSE 100 is 25 points higher as a fall in the pound once again boosts the UK’s leading index, says Chris Beauchamp, chief market analyst at IG.

FTSE hits fresh highs

Barring a sudden drop, it looks like we will be treated to another record close for the FTSE 100 this afternoon as the new week begins in fine style. Yet again the fall in sterling has become the primary means by which the FTSE has risen with some of the big names from the summer bounce, such as Reckitt Benckiser and Imperial Brands, making gains.

However, outside the UK global risk appetite seems muted at best. Dow 20,000 is still out of reach, and the waiting has gone on so long that it has now become something referred to ironically at best, rather than in the hopeful fashion that prevailed before Christmas.

The pound’s drop against the euro and the dollar has not affected the UK economy according to the latest set of UK PMIs, but tomorrow’s figures from Morrisons, and from other retailers later  this week, should mean that the impact of inflation starts to be seen. UK supermarkets remain beset by a number of pressures, which may well hit sentiment after a good overall performance over the past twelve months.

Enter your e-mail address to receive updates straight to your inbox

My Newsletter

You can easily unsubscribe at any time by clicking on the unsubscribe links at the bottom of each of our emails

About Author