LONDON MARKETS: FTSE 100 Flat As Pound Firms Up; Mining Stocks Provide Support
26 January 2019 - 12:37AM
Dow Jones News
By Emily Horton
Stocks set to lose 2% for the week
The FTSE 100 struggled to remain in the black on Friday, as
higher commodity stocks lifted the market, but a stronger pound
kept gains for the index in check.
What are markets doing?
The FTSE 100 added 0.1% to 6,826.81, after finishing down 0.35%
on Thursday. London's softer session was in contrast to stronger
gains across Europe. For the week, the FTSE is looking at a loss of
2%.
What's driving the market?
The British pound firmed up after the Sun reported
(https://www.thesun.co.uk/news/brexit/8274637/dup-agree-to-support-pm-brexit-plan/)
that the DUP have privately decided to back May's Plan B Brexit
deal, after she strengthens the proposal next week. Even as it
pared earlier, stronger gains, sterling rose to $1.3104 from
$1.3065 late in New York on Thursday. A stronger pound tends to
weigh on the FTSE 100, which houses many exporters who get a chunk
of their revenue from foreign companies.
The Queen has reportedly sent a message to U.K. lawmakers
encouraging them to seek common ground and grasp the big picture to
resolve the Brexit crisis, Reuters
(https://uk.reuters.com/article/uk-britain-eu/queen-sends-a-brexit-message-to-uk-politicians-end-your-bickering-idUKKCN1PJ0QN)
reported.
The new chief executive of Goldman Sachs Group Inc. (GS)), David
Solomon, also had a message for U.K. parliament--a messy Brexit
will impact the bank's investment decisions in the U.K
(http://www.marketwatch.com/story/goldman-boss-says-difficult-brexit-will-impact-uk-jobs-and-investment-2019-01-25).
What stock are active?
Heavyweight mining stocks were among the FTSE 100 top gainers on
Friday, Antofagasta PLC (ANTO.LN) gained 2%, Glencore PLC (GLEN.LN)
and Fresnillo (FRES.LN) rose around 3% and BHP Group (BHP.LN)
gained close to 2%.
Vodafone Group PLC (VOD.LN) lost nearly 3%, after reporting a
fall in revenue
(http://www.marketwatch.com/story/vodafone-revenue-falls-backs-full-year-guidance-2019-01-25).
Meanwhile, Rentokil Initial PLC (RTO.LN) lost 0.8%, after the
U.K. Competition and Markets Authority ordered the company to sell
several large supply contracts
(http://www.marketwatch.com/story/uk-cma-orders-rentokil-to-sell-supply-contracts-2019-01-25).
(END) Dow Jones Newswires
January 25, 2019 08:22 ET (13:22 GMT)
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