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FTSE Grazes 7450 Thanks To Weak Pound, Robust Commodities

Published 11/12/2017, 15:41
Updated 21/10/2020, 09:15

It was more of the same this afternoon, with the FTSE and sterling intensifying their interlinked gains and losses.

The pound was not in a good mood this Monday, the currency continuing to undo the – very brief – goodwill generated by the announcement of last Friday’s divorce bill agreement between the UK and EU. Cable is down 0.2%, and has fallen the wrong side of $1.337, while against the euro, sterling has shed a hefty 0.6%, forcing the pound below €1.133 (in comparison, last Friday the currency at one point climbed above €1.15).

This, alongside the very healthy growth posted in the oil and mining sectors, has sent the FTSE 0.7% higher. That means that UK index is now grazing 7450; if the FTSE can maintain those levels it is heading for its best close in almost exactly a month.

Elsewhere there was less going on. The DAX and CAC both fell by 0.2% as the euro jumped 0.3% against the dollar, while the Dow Jones nudged a meagre 15 points higher after the bell rang on Wall Street.

Monday has mainly been about bitcoin and the launch of the cryptocurrency’s futures. From Tuesday onwards, however, the new kid on the block will be fighting for attention with a smorgasbord of macro-data. On Tuesday investors will be looking to see if UK inflation has peaked at 3.0%. Moving to Wednesday and the UK jobs report – including that crucial wage growth figure – acts at an amuse-bouche for the US CPI number and likely rate-hiking Fed statement.

Thursday then bombards investors with a large amount of information, including UK and US retail sales, Eurozone flash manufacturing and services PMIs and statements from both the Bank of England and ECB.

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