FTSE 100 Sees Quiet Opening

The FTSE 100 opened to some muted trading, lurking just lower than Tuesday’s closing level, as a weak pound helped to support the internationally-focused companies in the index.

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shareprices.com - Wednesday, December 06, 2017

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The UK’s leading index shed three points shortly after opening, but there were some strong performers - Imperial Brands and British American Tobacco were some of the better performers - up 1.3 percent and one percent respectively.

The Sterling had another bad day, as traders waited for the results of the Brexit negotiations - but all news so far indicates that things are not going well. David Davis appeared before the select committee to tell them that no impact assessments on the potential impact of Brexit on the UK economy have been performed right now.

Brexit uncertainty has been hampering the sterling’s strength, but this is good news for the FTSE 100, as earnings for many companies increase when the poor exchange rate is taken into account.

The weak pound stopped the FTSE 100 from losing a significant amount, as several of the heavyweight companies opened weak this morning. Hammerson PLC was one of the poorer performers of the day. Hammerson has agreed to take over Intu Properties - at 0.475 Hammerson Shares per Intu share. The news boosted shares in Intu, but was poorly received by Hammerson investors.

Meanwhile, low-cost carrier easyJet PLC gained 0.8 percent after releasing some better than expected passenger statistics for November, and receiving an upgrade from Cazenove. EasyJet has benefited from the struggles of other low cost carriers in the travel sector.

 

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