Sterling climbs again on interest rate speculation
blue-chip stocks suffer when the pound rises because their overseas earnings are hit by a less favourable currency translation.
It comes after one of the Bank’s most dovish policymakers said he may back an increase “as early as in the coming months”.
Gertjan Vlieghe, an external voting member of the Bank’s Monetary Policy Committee (MPC), said he has been “struck” by a series of developments in the UK economy – including high inflation – and pointed to the wider economic backdrop of “improving global growth” over the past year.
Mr Vlieghe has yet to cast a vote in favour of a rise, having fallen among the majority when the nine-strong MPC voted 7-2 to keep interest rates on hold at record lows of 0.25 per cent on Thursday. If conditions are met, he could end up joining more hawkish members including Ian McCafferty and Michael Saunders increase.
But the MPC member said there were still grounds to hold steady on rates, particularly given “continued uncertainty” over the UK’s future trading relationship with the EU “and the rest of the world” in light of Brexit.
European markets also drifted lower yesterday, with Germany’s Xetra Dax and the Cac 40 in France both slipping by 0.2 per cent. However, the price of oil was 0.2 per cent higher at $55.57 a barrel following forecasts of increased demand and reports US refineries kicking back into gear.
In UK stocks, pub group
was the biggest riser on the second tier thanks to rising full-year sales and profit, while the pub chain’s Brexit-
for an backing chairman took aim at EU “oligarchs” in yet another rant. Revenue rose 4.1 per cent to £1.66 billion in the year to July 30 as the group booked profits of £102.8 million, an increase of 27.6 per cent.
Like-for-like sales rose four per cent in the period, with
saying comparable sales have increased by 6.1 per cent since August. Shares rosed more than 13 per cent, or 145p to 1,189p.
The biggest risers on the FTSE 100 Index were up 67p to 3,327.5p; to 158.2p;
up 48.5p to 4,741p; and up 51p to 5,045p. The biggest fallers were down 317p to 4,783p; down 35.5p to 794p; 152p to 4,486p; 18p to 568.5p.
up 2.2p THE S&P 500 finished over the 2,500 mark for the first time as it rose 0.18 per cent to hit 2,500.23, thanks to technology stocks bouncing back after two days of declines.
The S&P 500 information technology sector rose 0.21 per cent, powered by an surge in chipmakers, while
rose in its first gain since unveiling new iPhones on Tuesday.
Apple picked up $1.60, or 1 per cent, to $159.88 after three days of declines. Nvidia jumped $10.71, or 6.3 per cent, to $180.11 and hard drive maker
gained $2.73, or 3.2 per cent, to $88.52.
The S&P 500 tech index has been the best performing sector this year, rising more than 25 per cent, far outpacing the broader S&P 500’s 11.5-percent growth.
Wall Street largely shrugged off reports showing an unexpected drop in US retail sales last month and the first drop in industrial output since January, both in part due to the impact of Hurricane Harvey.
The Dow Jones Industrial Average ended up 0.29 per cent at 22,268.34, while the Nasdaq Composite added 0.3 per cent to 6,448.47.
rose 1.66 per cent to a record high after Canaccord Genuity raised its price target for the stock.
Among the laggards was
which sank 7.38 per cent, on track for its worst day in more than four years after disappointing forecasts for its profit and cloud business.