FTSE 100 Pushes Higher As No Deal Brexit Hurts Sterling
Published / Last Updated on 07/12/2020
Brexit trade deal discussions took place over the weekend but UK and EU leaders failed to agree on the final terms of a trade agreement, which then saw shares in house builders.
Sterling also fell with the pound falling 1.3% to $1.327 against the dollar while mid-cap companies that are more exposed to the UK economy fell into the red, down 0.8% on the FSTE 250.
The fall in the pound did lift the FTSE 100 and the UK blue-chip index up 17 points (0.3%) at 6,568. Remember, the majority of FTSE 100 is mad eup of exporters i.e. they earn their profits/sales overseas in $ or € and when bringing back/converting those profits to a weak sterling, it means that sterling based profits are higher an pushes shares prices up.
That said, there were sectors that are hurt by the news building and contruction shares fell as did thethe financial sector with Lloyds, Legal & General, NatWest and Barclays all down.
Comment
We cannot see a deal now being done within the next week or so.