DAVID MYRDDIN-EVANS
The FTSE 100 started the week on a positive note, helped by the pound weakening against the dollar, which boosts the FTSE’s dollar-based earnings. The pound fell 0.4% against the greenback despite Bank of England chief Mark Carney reiterating that a rate hike may be needed in the coming months.
On the corporate front, BAE systems was up 3.94% after announcing that Qatar’s defence minister had agreed to buy 24 Typhoon jets.
In early trade on Tuesday shares were slightly up ahead of Wednesday’s interest-rate decision in the US. However, the FTSE 100 was down 2.2% overall last week as a strengthening pound hit overseas-earning companies.
The blue-chip index fell 1.1% on Friday to a four-month low. Cruise ship operator Carnival led the fallers, down 6.2%. But Imperial Brands was up 2.1% on positive broker comment ahead of a trading update from the cigarette company on September 28.
On Thursday, the FTSE 100 dropped 1.1% after Bank of England comments that interest rates could rise soon. Housebuilders were among the biggest fallers, with Taylor Wimpey dropping 3.7% and Barratt Developments down 3.4%.
Wm Morrison was down 5.1% as half-year results showed margin deterioration and disappointing cash generation. Experian was also off 4.8% as the US Federal Trade Commission confirmed it was examining a data breach at rival Equifax. However, Next jumped 13% as the retailer raised its financial guidance.
The FTSE 100 lost 0.3% on Wednesday as weaker metal prices and stronger sterling hit mining shares. Antofagasta fell 3.9% while Anglo American dropped 3.2%.
ITV was also down 1.7% on a negative broker comment for TV broadcasters.
Last Tuesday also saw the bluechip index slip 0.2%, as the pound strengthened after inflation rose to 2.9%.