Leading stocks in London have started the week in a bullish mood with the FTSE100 edging above last week’s high to trade at a seven-week high. The pound is also gaining this morning with the GBPUSD looking to find support above the 1.30 handle after falling hard at the end of last week due to the double-whammy from the Bank of England announcement and the US jobs report.
Miners lead the charge higher
Several of the best performing stocks on the FTSE 100 come from the mining sector with Anglo American (LON:AAL), Glencore (LON:GLEN) and BHP Billiton (LON:BLT) all trading firmly higher than last week’s closing levels. These firms are amongst the most sensitive to the strength of the pound, and whilst the currency is making tentative gains against the US dollar this morning, the sizable pullback from the 10-months highs seen in this pair shortly before the BoE decision last Thursday lunchtime has been a favourable development in FX terms for Mining stocks.
Paddy Power Betfair falls as CEO steps down
News that Breon Corcoran will step down from his role as the chief executive of Paddy Power Betfair has seen a sharp drop in the gambling firm’s stock this morning, with shares currently showing a decline in excess of 6%. It is just 18 months since Irish bookmaker Paddy Power completed a merger with Britain’s Betfair but the expected synergies have yet to provide the kind of positives that management were hoping for. The share price was already showing double-digit losses for the past year and the timing of this latest development is far from ideal. Non-executive director Peter Jackson will replace Corcoran but with no set date given for the change, investors may well see some further downside in their holdings in coming weeks.