Sterling Turns Lower, Boosting U.K. Shares to One-week Highs

U.K. shares advanced on Thursday after data showed U.K. gross domestic product rose as much as expected in the last quarter. A weak British Pound also contributed to boost the stock benchmark index higher.

The FTSE 100 index added nearly 0.7 percent to trade at 7430.00 – the highest level in more than one week-  after having closed marginally higher on Wednesday.

Data released by the Office for National Statistics showed U.K. gross domestic product (GDP) expanded by a seasonally adjusted 0.3% in the second quarter following a rise of 0.2 percent in the three-month period to March. The reading was in line with expectations. On a yearly basis, UK economic growth advanced 1.7% in the April to June period.

The Office for National Statistics also published data on business investment that showed no change on a quarterly basis. Analysts had forecast a growth rate of 0.4%, compared to the 0.6% seen in the first quarter. In a separate report, the index of services in the U.K. rose 0.5% after having added 0.4% in the preceding quarter.

British Pound reversed earlier gains to trade as low as $1.28000. Sterling weakness helps boost shares of the FTSE’s many multinational companies that get their earnings in other currencies.

Trade suggestion

Buy Stop at 7430.00, Take profit at 7460.00, Stop loss at 7420.00

Start Trading Forex, Indices, Commodities And Hundreds of Other Markets With Capital Street FX Now!

Leave a Reply

Your email address will not be published. Required fields are marked *