FTSE breakout after Sterling shakeout

FTSE breakout after Sterling shakeout

FTSE breakout after Sterling shakeout

Mike van Dulken, Head of Research at Accendo Markets commented to clients at midday:

The UK’s FTSE index of blue-chip shares trade highs of the day, extending its breakout beyond late Feb highs. This comes courtesy of dovish commentary from Bank of England Governor Carney late yesterday, suggesting mixed macro data meant that a May rate hike wasn’t a certainty, as markets are implying. This extended GBP/USD’s retreat to 6-month rising support (GBP/EUR back to late March lows) to give the FTSE’s many internationally-exposed members another boost. BoE member Saunders has helped Sterling off its lows, with a reiteration of his hawkish views, but this isn’t hindering the index.

FTSE 100 +15pts thanks to contributions from HSBC/STAN (Asia exposure, results early May), RDSb (higher oil, weaker GBP), BATS/IMB (Bounce after Phillip Morris-inspired declines, weaker GBP), GSK (weaker GBP, sector M&A), ULVR (bounce post results, benefiting from RB woes?), Miners (weaker GBP, metals off lows), CRH (considering US business listing, share buybacks). Weighing on the index are RB (disappointing Q1 update), SHP (M&A uncertainty) and RR.

The FTSE 100 is holding yesterday’s breakout above 7340 late Feb highs, keeping open the door for a rally towards 7400, retracing yet more of the late Jan/early Feb correction.”

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Categories: Analysis, News
Tags: FTSE, news, sterling

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