Tue, 23rd Apr 2019
The FTSE 100 has broken out of a two-day long losing streak, with the FTSE 250 also enjoying modest gains. The markets turned around thanks to some better than expected UK growth data at the end of the week, which helped to improve the mood, and keep the pound off its recent peaks against the euro and dollar.
The rebound on the FTSE 100 was helped by all sectors - although the top performers of the day were financial stocks. Healthcare and industrial stocks were some of the best contributors - gaining 0.6 percent over the course of the session; taking the index to 7,658.89.
The FTSE 100 is still down over the course of the week. This is due in part to the number of multinational companies that dominate the listings. These companies take a large portion of their earnings in dollars so they are more exposed to currency movements. When the pound is strong this makes exports much more expensive, and means that foreign earnings are reduced on the balance sheets. Investors are looking to buy back into some of the main dollar earnings, as they now look like good value. Rolls Royce is up by 1.8 percent, Pearson - a US forcused textbook company, is up by 1.4 percent, and the chemical-focused Croda has gained 1.5 percent. Another major gainer - albeit one focused on the UK markets primarily, is Just Eat. The food ordering website gained 2.3 percent, making it the single best performer in the top flight.