The Courier & Advertiser (Angus and Dundee)
Sterling buoyed as dollar takes a knock following chair’s comments
“A resurgent pound served to limit any FTSE 100 upside
London’s top index handed back some of its recent gains after oil stocks, a resurgent pound and a weak opening for US markets weighed on sentiment.
Fed chairman Jerome Powell’s comments on the potential for a dialling down of the pace of rate hikes supported trading at the start of play but positivity faded later in the day.
The FTSE 100 finished the day down 14.56 points, or 0.19%, at 7,558.49.
Sterling was buoyed by a knock to the dollar following Mr Powell’s comments, which affected currencysensitive stocks such as Shell and BP.
The pound was up 1.62% against the dollar at $1.225 and 0.68% higher against the euro at €1.166 at the close.
Joshua Mahoney, senior market analyst at IG, said: “A resurgent pound served to limit any FTSE 100 upside, with early European optimism fading into the close.
“Wednesday’s comments from Powell over the willingness to slow the pace of tightening has helped boost risk assets, to the detriment of the dollar.
“Financial stocks have particularly felt the pressure, with expectations of a slower and lower approach from the Fed serving to limit margin expectations for banks.”
The price of oil moved higher as it was boosted by the weaker dollar and hopes the Chinese Government will avoid a slump in demand by slowing the easing of Covid restrictions.
Brent crude oil increased by 1.29% to $88.09 per barrel when the London markets closed.
The biggest risers in the FTSE 100 were Ocado Group, up 42.2p at 664.8p, Intermediate Capital Group, up 74.5p at 1,268p, Schroders, up 21p at 463.4p, Prudential, up 36.6p at 1,016p, and Scottish Mortgage Investment Trust, up 26.8p at 796.4p.
The biggest fallers of the session were Pearson, down 51.6p at 943.6p, Rolls-royce, down 3.99p at 86.93p, Standard Chartered, down 22.6p at 594.8p, Anglo American, down 106p at 3,301.5p, and Shell, down 62p at 2,382p.