FTSE 100 claws back losses as sterling drops
The FTSE 100 clawed back some of its losses today after a turbulent week of trading.
The blue chip index climbed one per cent to roughly 7,150 this afternoon, ending a major selloff which has pushed the London market into one of its worst weeks in recent years.
Read more: CMC Markets forecasts jump in annual earnings
Leading the FTSE 100 risers today was Flutter Entertainment, the owner of Paddy Power which has recently revealed its plans to buy The Stars Group (TSG) in a £10bn deal.
While the FTSE 100 climbed, the pound edged down 0.4 per cent, hovering around $1.228 today.
Yesterday sterling broke past $1.24, driven both by weakness in the dollar and a slight rise in optimism over Brexit among some traders.
“European equities remained on the front foot going into the US session. Equity markets look in much better shape after what’s been a volatile week. Nevertheless it’s been a rough ride for the FTSE 100 in particular,” said Neil Wilson, chief market analyst at Markets.com.
Read more: City moves: who is switching jobs?
Regarding the drop in sterling, Wilson added: “Fretting about the UK’s exit from the EU is the driver of the volatility. The news out today is a cacophony of mixed messages…Pricing for this has become a nightmare for traders – expect more volatility. Many may feel it safer to stay on the side lines.”