GBP loss is FTSE’s gain

The FTSE100 is posting strong gains, making a bullish test of July's 7782 highs. That said, looking at who's in the driving seat, it isn't a risk-on rally.

GBP loss is FTSE’s gain

The FTSE100 is posting strong gains, making a bullish test of July’s 7782 highs. That said, looking at who’s in the driving seat, it isn’t a risk-on rally. It’s more to do with an extension of Sterling weakness as fears over a disorderly Brexit grow, offering a perverse benefit to the FTSE’s significant global exposure, especially defensives. Energy names remain strong as a result, despite Brent crude oil prices off this week’s highs, although many Miners are flat.

Contributors: FTSE +65pts, helped higher by HSBA (Asian exposure, heavyweight), RDSB/BP/BATS/DGE/IMB (momentum, weak GBP), PRU (results), Miners (Chinese trade data), ULVR/AZN/SHP/VOD (momentum, weak GBP). Dragging the index lower is PPB (trimmed FY guidance) and GLEN (missed H1 expectations). Technicals: The FTSE100 is testing July’s 7782 highs, poised for a challenge of June’s 7794 highs.

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Categories: Analysis, News
Tags: FTSE 100

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