FTSE 100 sees move back to 6800 as weakness in British pound gives boost

FTSE 100 sees move back to 6800 as weakness in British pound gives boost

“It’s simple to explain the drop in the GBP: the EU has launched a lawsuit against Britain for alleged violations of the Brexit deal over Northern Ireland,” said Marshall Gittler of BDSwiss.

  • FTSE 100 gagne 47 points
  • British pound down nine tenths of a cent
  • Greggs higher after serving the priest’s egg in his results

Helped by the weakness of the pound sterling, the FTSE 100 is higher and comes back towards the 6,800 level.

The London heavy equity index rose 47 points (0.7%) to 6,797.

In the forex markets, the pound (GBP) lost nine tenths of a cent to trade at US $ 1.3814.

“It’s simple to explain the drop in the GBP: the EU has launched a lawsuit against Britain for alleged violations of the Brexit deal on Northern Ireland. Brussels has said the UK government’s moves to unilaterally ease trading conditions for Northern Irish companies violate the Brexit Treaty. The process could lead Britain to the European Court of Justice and face trade sanctions, ”explained BDSwiss’s Marshall Gittler.

“That’s all the UK industry needs. When you consider that UK exports to the EU account for around 48% of total UK exports (2015-2019), and when you look at what happened to UK exports to the EU immediately after Brexit anyway (- 40.5% mom [month-on-month] vs + 3.6% mom for exports elsewhere), you can see the consequences this could have on UK industry. Of course, if you can see that you can probably see how Brexit was a bad idea for the UK initially, but that’s another story, ”Gittler said.

The FTSE 250 is less suited to the value of the pound sterling than the FTSE 100 as its components tend to be more UK-focused, but it actually outperforms the FTSE 100 this morning with a gain of 205 points (1 , 0%) to 21727.

Greggs PLC (LON: GRG), whose outlets are more ubiquitous in Britain than McDonald’s branches, is doing its part to support the FTSE 250, with its shares rising 5.2% to 2324p after revealing in its annual results it is to open 100 new stores run by the company this year.

“The pandemic has clearly left its mark on Greggs, but his actions remain on a roll nonetheless,” said Richard Hunter at Interactive Investor, closely observing the journalistic tradition of using the phrase “on a roll” to describe the performance of Greggs.

No mention of turnover, apple or otherwise, however …

“The various lockouts have tested the resilience of the business to the fullest, and the pre-tax loss of £ 14million for the year compares to a prior profit of £ 108million; however, split into two distinct halves, the direction of travel has clearly improved with a first half loss of £ 65million more than offset by a profit of £ 51million in the second half, “said Hunter.

Plus 500 Ltd (LON: PLUS), contracts for the difference trading platform operator, is another successful mid-cap.

Shares are 3.6% firmer at 1,370.5 pence after a brief but optimistic trading statement this morning.

The results for Just Group PLC (LON: JUST) were hailed by the city.

Shares are 5.3% to 100p good after equity is released and the senior annuity specialist said he hit his goal of capital self-sufficiency a year ahead of schedule.

I wonder if the same can be said of the majority of its customers.

8:35 am: London follows Wall Street’s lead (for once)

The FTSE 100 got off to a positive start after a lackluster end to Monday’s trading session.

As the bond markets began to settle back into a normal trading pattern, Wall Street ended in a happier mood, which seems to have fueled sentiment on this side of the Atlantic.

As inflation concerns have subsided (or at least removed for now), attention has returned to the roll-out of vaccines in the UK and the possibility of a return to some sort of normalcy.

Scottish Mortgage Trust (), one of Britain’s biggest investors in Silicon Valley, jumped 2.2% at the start of trading, buoyed by the strong performance of the tech-driven NASDAQ index.

Topping the index was the little-known (), an investor in US stocks, who rose 2.3%.

() rose 2% after its vaccine actually received a flawless health check from the UK drugs regulator and the World Health Organization.

6:50 a.m .: Footsie should score higher

The FTSE 100 is expected to rebound on Tuesday morning after a solid finish for Wall Street overnight.

London’s blue chip index will open around 31 points more, after falling late into the red the day before, when it finished 12 points lower at 6749.7.

US stocks had a day both up and down before closing on a bullish note, with the Dow Jones and S&P 500 rising 0.5% and 0.7% to new highs.

The tech-based Nasdaq Composite was the strongest, rising more than 1% as it continues to rebound from its big swing earlier in the month.

“A calm day in the US bond market was enough to bring the herd back to action,” said market analyst Jeffrey Halley at Oanda.

“The positive session in Asia will allow European markets to start positively.

“However, the suspension of vaccinations throughout the block and a resurgence of new infections in some areas will temper the gains. Overall, the stock markets appear content to be cautiously following Wall Street’s lead ahead of the outcome of the FOMC meeting. ”

Around the markets

Pound – down 0.2% to US $ 1.3872

Oil – down 0.7% to US $ 68.29

Gold – Up 0.2% to US $ 1,734.45

Bitcoin – down 6% to $ 54,891.26

6h50: Early Markets – Asie / Australie

Stocks in the Asia-Pacific region were higher on Tuesday after an overnight session on Wall Street where the Dow Jones Industrial Average and S&P 500 closed at record highs.

The Hang Seng Index in Hong Kong gained 0.34% while the Shanghai Composite Index in China rose 0.52%.

In Japan, the Nikkei 225 index rose 0.52% and South Korea’s Kospi jumped 0.75%.

Australian stocks advanced, with the S & P / ASX 200 closing 0.80% higher.


Proactive News from Australia:

Creso Pharmaceuticals Ltd () (FRA: 1X8) became ASX’s first psychedelic action through its acquisition of Canadian psychedelic medicine company Halucenex Ltd.

() (OTCMKTS: RDFEF) is strengthening its position of strength in the world-class Anadarko Basin in Oklahoma by purchasing the drilling interest and associated PDP reserves that are subject to its drilling joint venture in the STACK Play.

() signed a sale and purchase agreement to acquire Brace168 Pty Ltd after satisfactory completion of due diligence.

() completed the Lantern South prospect diamond drilling of the Fraser Range Project in WA with zones of strongly disseminated sulphides intersected 110.5 meters at 111.35 meters and 169 meters at 171.3 meters.

Fe Ltd () (FRA: B4T) has announced its intention to appoint emerging mining contractor Big Yellow as mining contractor for the West Wiluna JWD Iron Ore project in Washington state, which is approaching production.

() (OTCMKTS: PDDTF) (FRA: PL4) has launched its Definitive Feasibility Study (DFS) for its integrated lithium hydroxide operations in North Carolina which will include Metso Outotec’s innovative alkaline pressure leach technology aimed at reduce the carbon footprint and improve the economy.

() (FRA: PF8) (VSE: ELI) continued its Phase 2 resource drilling program on the Wolfsberg Lithium project in Austria, with the program on target and currently below budget expectations.

() has restarted drilling at its 80% -owned Gidji joint venture project approximately 15 kilometers north of Kalgoorlie in the gold fields of eastern Western Australia.

‘s () (OTCMKTS: BELGF) has received further solid drill results from Marceline’s recent discovery at its Bellevue gold project in Washington state, extending the known length to 500 meters and this remains open.


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