FTSE 100 closes at document excessive as companies given enhance by tumbling worth of pound towards US greenback | EUROtoday

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The FTSE 100 has hit a brand new all-time highest closing worth, as the worth of the pound tumbled towards the US greenback at hand companies on Britain’s prime inventory market index a lift.

The index was up 1.62 per cent as buying and selling closed at 8,023.87 factors on Monday, surpassing its earlier closing document of 8,012.53 from February 2023 – however falling wanting its all-time peak of 8,047.06, which it touched briefly inside a buying and selling day in February.

As the pound fell to its lowest level towards the greenback for round 5 months, dropping to 0.2 per cent to $1.23, the blue-chip index leapt 128.02 factors by Monday afternoon.

Despite being listed in London, many FTSE members make a lot of their earnings overseas or in {dollars} corresponding to oil giants Shell and BP.

Retailers Sainsbury’s, Marks & Spencer, Tesco and Ocado had been among the many greatest risers of the day, as investor sentiment was lifted on continued hopes that tensions within the Middle East will ease, which helped oil costs retreat.

But Rachel Winter, companion at Killik & Co, stated the robust efficiency by the FTSE 100 was “largely due to the weakness of sterling versus the dollar”.

She added: “The FTSE contains a large number of big international companies that earn their revenue in dollars and report their profits in sterling.

“When the dollar strengthens, these companies become more profitable in sterling terms.

“The strength of the dollar is due to sticky inflation in the US, which means that US interest rates will remain higher for longer.”

The FSE 100 has gained 4 per cent this 12 months, lower than European rivals corresponding to France’s CAC and Germany’s DAX, that are up greater than 6 per cent.

The index can be lagging its US rivals, with the S&P500 index of New York-listed companies up 5.65 per cent.

London is struggling to draw new inventory market listings, with companies seeking to promote shares as a substitute favouring the US, with its increased tolerance for large pay packets for bosses and entry to extra buyers who’re keen to supply increased share costs.

Shell, the vitality large, is the most recent firm to contemplate abandoning its base within the UK for the US.