Financial Planning

Rising pound weighs on FTSE 100

Financial Planning
Published: 13 February 2018

A strengthening pound, bolstered by new data that UK inflation has remained at an unexpectedly high level in January, has weighed on FTSE 100 (INDEXFTSE:UKX) this morning. Investors are concerned as higher inflation and increasing bond yields have been the driving force behind the recent global sell-offs.

The blue chip share index fell 0.08%%, down 6 points at 7,170.93 by 10.36 GMT.

A stronger sterling has put a dampener on the heavyweight, dollar-earners with AstraZeneca (LON:AZN) shares down 0.6%, Imperial Brands (LON:IMB) 1.5% and Unilever (LON:ULVR) 0.8%.

The miners added support to the index with firm metal prices pushing up shares in Anglo American (LON:AAL) 2.6%, BHP Billiton (LON:BLT) 1.2%, Glencore (LON:GLEN) 2.0% and Rio Tinto (LON:RIO) 1.1%.

Package travel group TUI (LON:TUI) shares rose 4.5% to a record high on the back of very good summer trading and it reaffirmed its guidance for the current financial year.

easyJet (LON:EZJ) shares gained 0.9% on an upgrade by Oddo BHF to Buy from Neutral.

Shares in engineering firm Smiths Group (LON:SMIN) 0.8% rose as Barclays opened their coverage with an Overweight rating.

On the currency markets, sterling rose 0.46% against the dollar to $1.3912 and gained 0.13% against the euro to €1.1272.