FTSE 100 watch: Footsie little changed as ‘hard Brexit’ fears hit sterling

Share On Facebook
share on Linkedin

The FTSE 100 index has been little changed in London in today’s session, with gains in companies with international exposure offsetting a drop in banks, as the pound tumbled to a three-month low amid concerns that the UK could face a ‘hard Brexit’ from the European Union following last year’s referendum.

As of 12:07 GMT, the Footsie had added 3.06 points to stand 0.04 percent higher at 7,340.87, having touched a fresh record high of 7,354.14 earlier in the session. The FTSE 100 is outperforming other European indices, having found support in sterling’s drop amid expectations that Prime Minister Theresa May will signal a ‘hard’ Brexit for Britain when she gives a speech tomorrow. The pound’s retreat is benefitting blue-chips with international exposure, which generate revenue outside the UK.

Gains in the Footsie, however, have been capped by a pullback in banking stocks. Barclays (LON:BARC) is currently leading other London-listed lenders lower, having shed 2.05 percent to 230.43p so far today.

“Having access to the single market is key for (the banks), or indeed if they can’t have access, then what the particular requirements of the passporting might be for them to be able to still do business across Europe,” Dafydd Davies, partner at Charles Hanover Investments, told Reuters. “If it is a genuinely hard Brexit and then they have to look at relocation costs, that could be quite substantial for them. However at the moment, it’s very much a wait-and-see situation.”

The FTSE 100 index was 0.08 percent up at 7,343.33 points as of 12:16 GMT on Monday, 16 January 2017.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This article was provided by Windsor Brokers. Click here for more information.

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20230209 06:39:42