FTSE hits fresh highs

Chris Beauchamp IG

Heading into the close, the FTSE 100 is 25 points higher, as a fall in the pound once again boosts the UK’s leading index.

- Fresh record close in sight for FTSE
- International firms feel the benefit of weaker pound
- UK supermarkets in focus

Barring a sudden drop, it looks like we will be treated to another record close for the FTSE 100 this afternoon, as the new week begins in fine style. Yet again the fall in sterling has become the primary means by which the FTSE has risen, with some of the big names from the summer bounce, such as Reckitt Benckiser and Imperial Brands, making gains. However, outside the UK, global risk appetite seems muted at best. Dow 20,000 is still out of reach, and the waiting has gone on so long that it has now become something referred to ironically at best, rather than in the hopeful fashion that prevailed before Christmas.

The pound’s drop against the euro and the dollar has not affected the UK economy, according to the latest set of UK PMIs, but tomorrow’s figures from Morrisons, and from other retailers later this week, should mean that the impact of inflation starts to be seen. UK supermarkets remain beset by a number of pressures, which may well hit sentiment after a good overall performance over the past twelve months.

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Chris Beauchamp

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