It’s been yet another good week for the FTSE 100, with the leading UK benchmark set for a record weekly close. The pound is also rising and after some weakness early on in the week is looking to end near its high after shrugging off the drop from the passing of the Brexit bill.
Financials look to join the rally
Royal Bank of Scotland (LON:RBS) and Barclays (LON:BARC) are both moving higher today as stocks in the financial sector are looking to join the rest of the index in posting gains this week. Housebuilders are also in the green with Barratt Developments (LON:BDEV) and Taylor Wimpey (LON:TW) gaining by 1.22% and 1.14% respectively. The gains are likely due in part to a positive set of results for Berkeley Group which has seemingly led to investors in the sector to view their future prospects as slightly more upbeat. Despite a 16% drop in new home sales the group has described inquiry levels as “robust” and stated that pricing continued to be “resilient”. The broader index is pretty much flat on the day but Thursday’s gains saw a push up into uncharted territory and barring a dramatic late sell-off the FTSE 100 will post a highest ever weekly close. There is however some stocks that are declining on the day with some notable weakness seen in the retailers. Marks & Spencer and Next are amongst the worst performers with both set to end a quiet week on their lows.
Pound recovers after soft start to the week
The pound is gaining against the majority of its peers this morning as the currency adds to gains seen in recent days. The week started off on the defensive for sterling, but after posting trading down to the low 1.21s against the US dollar on Tuesday there has been a notable recovery. It remains too early to call the bottom in the market but the price action has certainly been more constructive in recent sessions and there is some suggestion that the worst could be behind us for the time being. With expectations for the future path of the US and UK base rates having been at almost polar opposites going into the central bank meetings, this week has seen some moderation away from these extremes with the Fed appearing not quite so hawkish and the BoE not as dovish.