FTSE 100 trades above 7,000 as Brexit worries drag down sterling
On Tuesday, British blue-chip stocks bounced to their peak in more than a year, as Brexit worries drove the sterling to a 31-year minimum against the dollar.
The FTSE 100 ascended 0.7%, trading at 7,031.07. Obviously, a close higher 7,000 would be the London benchmark’s first since April 2015.
Simultaneously, the sterling dipped as low as $1.2762, its lowest value since 1985 and also below the level achieved in the wake of Britain’s vote in June to abandon the European Union. Late no Monday, the British pound was worth $1.2858. Against the common currency the British pound trded €1.1435, tumbling from €1.1452 late on Monday.
Weakness in the British pound brings benefits to companies, making the bulk of their profit overseas, and approximately 75% of profits for the FTSE 100 is generated outside Great Britain from large international companies.
Among these, educational publisher Pearson PLC appeared to be the leader of gainers, with its stocks ascending 4.2%.