LONDON MARKETS: U.K.'s FTSE 100 Gains, Boosted By Fresh Drop For Brexit-battered Pound
September 03 2018 - 4:07AM
Dow Jones News
By Victor Reklaitis, MarketWatch
EU negotiator Michel Barnier blasts U.K. Prime Minister Theresa
May's Brexit plan
The U.K.'s main stock index advanced Monday, getting a lift from
the pound's slide, which came as a key European Union official
criticized Britain's Brexit plan.
A softer pound can boost the FTSE 100, as the index's
multinational companies generate most of their sales in other
currencies.
How markets are performing
The FTSE 100 rose 0.8% to 7,488.44, after Friday's fall of 1.1%
(http://www.marketwatch.com/story/uk-stocks-fall-on-brexit-and-trade-uncertainty-2018-08-31)
that left it down 4.1% for August.
The British blue-chip gauge is showing a drop of nearly 3% for
the year to date.
The pound was buying $1.2891, down from $1.2959 late Friday in
New York.
Trading could be quiet in the U.K. on Monday, as U.S. investors
have the day off for Labor Day
(http://www.marketwatch.com/story/labor-day-which-markets-are-closed-2018-08-29).
What's moving markets
The political maneuvering around the U.K.'s plan for leaving the
EU in March continued to grab the attention of traders.
Michel Barnier, the EU's top Brexit negotiator, blasted U.K.
Prime Minister Theresa May's proposals in an interview with a
German newspaper that was published over the weekend. Barnier
reportedly said they could mean "the end of the single market and
the European project
(https://www.bbc.co.uk/news/uk-politics-45389610)," with his
criticism coming after he appeared to offer an olive branch
(http://www.marketwatch.com/story/british-pound-jumps-uk-stocks-fall-after-eus-barnier-offers-upbeat-brexit-comments-2018-08-29)
last week.
Don't miss:How a 'no-deal Brexit' could play out for U.K. stocks
(http://www.marketwatch.com/story/how-a-no-deal-brexit-could-play-out-for-uk-stocks-2018-08-31)
And see:A top London startup's CEO flags the biggest Brexit
threat to his industry
(http://www.marketwatch.com/story/a-top-london-startups-ceo-flags-the-biggest-brexit-threat-to-his-industry-2018-08-06)
What are strategists saying?
"Progress in the Brexit negotiations is not encouraging," said
Konstantinos Anthis, head of research at ADS Securities, in a
note.
"Theresa May ruled out a second referendum on Brexit, and the
EU's chief negotiator Michel Barnier said he's opposed to a divorce
blueprint that would keep economic ties with the union in place.
The momentum for the pound is pointing lower, and even though we
saw a relief rally over the past couple of weeks, these gains are
now under threat."
Stocks in focus
WPP PLC's stock (WPP.LN)rose 0.6% after the advertising giant
picked Mark Read as its new CEO
(http://www.marketwatch.com/story/wpp-picks-company-veteran-mark-read-for-ceo-2018-09-03),
placing a company veteran at the helm following the departure of
founder Martin Sorrell.
Off the FTSE 100, shares in Dechra Pharmaceuticals PLC
(DPH.LN)dived 15% after the company said its pretax profit rose
modestly
(http://www.marketwatch.com/story/dechra-pharma-shares-fall-19-after-results-2018-09-03)
as increased costs largely balanced out revenue growth. Dechra
produces pharmaceutical products for animals.
(END) Dow Jones Newswires
September 03, 2018 04:52 ET (08:52 GMT)
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