FTSE 100 dips again as sterling recovers some strength
What a difference a day makes. Having hit a record high yesterday, the FTSE 100 started this morning in negative territory.
The index fell 0.5 per cent to 7,032 points in early trading, having reached the heady heights of 7,127 yesterday – above the record high of 7,122 points it set in April 2015 (although it later closed slightly lower).
It was dragged down by Old Mutual, which fell 2.3 per cent to 193.1p, while Fresnillo dropped 1.9 per cent to 1,616p.
Investors were rather more keen on airlines following the £165m rescue of Monarch by Greybull Capital. EasyJet led the risers, with shares jumping 2.9 per cent to 927p after it issued €500m of bonds, while British Airways owner IAG was also one of the biggest risers, up 1.8 per cent at 382.9p.
The FTSE has bounced in recent days, partly thanks to record falls in sterling. Although it gained against both the euro and the dollar today, it remained below $1.23 this morning, suggesting further volatility is on the way.
However, analysts were pleasantly surprised by stocks' reaction to the currency.
The UK index wasn’t as displeased by the pound’s comeback as one would expect, eking out a 12 point rise after the bell to continue to hover the wrong side of 7100," said Connor Campbell, financial analyst at Spreadex.
"However much the pound takes back today it still faces a long and rocky road to March and the triggering of Article 50."