Sterling Turns Lower, Boosting U.K. Shares to One-week Highs
Aug, 24th 15:07
U.K. shares advanced on Thursday after data showed U.K. gross domestic product rose as much as expected in the last quarter. A weak British Pound also contributed to boost the stock benchmark index higher.
The FTSE 100 index added nearly 0.7 percent to trade at 7430.00 – the highest level in more than one week – after having closed marginally higher on Wednesday.
Data released by the Office for National Statistics showed U.K. gross domestic product (GDP) expanded by a seasonally adjusted 0.3% in the second quarter following a rise of 0.2 percent in the three-month period to March. The reading was in line with expectations. On a yearly basis, UK economic growth advanced 1.7% in the April to June period.
The Office for National Statistics also published data on business investment that showed no change on a quarterly basis. Analysts had forecast a growth rate of 0.4%, compared to the 0.6% seen in the first quarter. In a separate report, the index of services in the U.K. rose 0.5% after having added 0.4% in the preceding quarter.
British Pound reversed earlier gains to trade as low as $1.28000. Sterling weakness helps boost shares of the FTSE’s many multinational companies that get their earnings in other currencies.
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