U.K. Stocks Soar to Two-week Highs As Sterling Declines Following Weaker-than-expected GDP Data
U.K. stocks jumped to highest level in more than two weeks on Friday, heading for a second straight weekly gain thanks to a weak British Pound that came after a worse-than-expected Q2 GDP data.
The benchmark FTSE 100 index soared dramatically nearly 0.6 percent to trade at 7,363.05 – the highest level since September 14th – with all sectors trading in the positive territory. The index looked set to close the week with a rise of 0.7 percent which would help to pare a monthly pullback to roughly 0.9%.
Sterling dropped 0.57 percent in European morning trading session versus the dollar after the Office for National Statistics reported the second-quarter gross domestic product that was revised lower. According to the report, the final reading of year-on-year growth slipped to 1.5%, down from a previous estimate of 1.7%.
A weak pound helps boost shares of multinational companies on the FTSE 100 due to the fact that their companies’ oversee earnings can be increased when converted back to sterling.
Buy Stop at 7365.00, Take profit at 7400.00, Stop loss at 7350.20