FTSE 100 LIVE: Pound PLUNGES ahead of crunch Brexit talks – but index surges
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The UK and EU set to undertake the latest round of Brexit talks later today. Yesterday the pound plunged by 0.92 percent against the US dollar.
The drop came following fears a deal between London and Brussels may not be reached before the October 15 deadline.
Significant differences remain between the two negotiating sides on the key issues of fishing rights and state aid.
Prime Minister Boris Johnson has said a no deal Brexit would be a good outcome for the UK and vowed to walk away from talks if the EU refused to give ground.
The threat of a breakdown in the negotiations sparked the pound’s fall.
The fall in the currency’s worth means FTSE 100 companies’ overseas earnings are worth more and has helped boost the worth of the index.
Russ Mould, investment director at AJ Bell, said: “Dominated by constituents with substantial overseas earnings, the index benefits from the bump these earnings get when the pound falls against other major currencies.”
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6.00am update: Global stocks stabalise after fall last week
World shares rose slightly led by Europe on Monday after last week’s rout in US tech stocks, though investors worried that any rally could be short-lived and valuations remained high against the backdrop of a global economy in recession.
Market activity was subdued with the United States closed for the Labor Day holiday, though Nasdaq futures fell 0.4 percent.
European bourses, which have fewer technology stocks compared with the United States, started the week in the black, driven by a 2 percent gain in Germany’s DAX and London’s FTSE 100.
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