U.K. Stocks Soar to Two-week Highs As Sterling Declines Following Weaker-than-expected GDP Data
Sep, 29th 09:53
U.K. stocks jumped to highest level in more than two weeks on Friday, heading for a second straight weekly gain thanks to a weak British Pound that came after a worse-than-expected Q2 GDP data.
The benchmark FTSE 100 index soared dramatically nearly 0.6 percent to trade at 7,363.05 – the highest level since September 14th – with all sectors trading in the positive territory. The index looked set to close the week with a rise of 0.7 percent which would help to pare a monthly pullback to roughly 0.9%.
Sterling dropped 0.57 percent in European morning trading session versus the dollar after the Office for National Statistics reported the second-quarter gross domestic product that was revised lower. According to the report, the final reading of year-on-year growth slipped to 1.5%, down from a previous estimate of 1.7%.
A weak pound helps boost shares of multinational companies on the FTSE 100 due to the fact that their companies’ oversee earnings can be increased when converted back to sterling.
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