FTSE rescued from sharp decline due to fluctuating pound

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By August Graham, PA City Reporter

A falling pound caused by sour UK-EU relations helped save the FTSE 100 from a hole its own miners dug on Wednesday London’s top index closed the day slightly in the red, down 14 points, or 0.2%, to 7,081, but that came after a recovery from the morning’s when the index struggled.

It was the steadily falling pound that gave the FTSE some support. The index is full of companies selling services in dollars, so it is often backed by a depreciation of the pound sterling and is also affected as the pound sterling strengthens.

The pound sterling was around the end of the game in London 0.1% against two main currencies. A pound would buy $ 1.4121 or EUR 1.1588.

Brussels has announced that it will take action if the UK government does not stop breaking the section of the Brexit deal that the two sides struck over Northern Ireland .

The Northern Ireland Protocol to the Withdrawal Agreement aims to avoid a hard border between Northern Ireland and the Republic of Ireland.

Despite the falling pound, the FTSE was still lower. This was mainly caused by some of the largest and oldest mining companies in the world, and a new one was launched earlier this week.

Evraz, Anglo American, Rio Tinto, and BHP all posted declines of more than 2%. Meanwhile, Thungela Resources, which was spun off from Anglo on Monday, lost 9.6%.

It was a tumultuous first week of trading for Thungela after it was hit by a short seller before its stocks began trading.

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The US markets were relatively uneventful. Both of the major New York indices, the S&P 500 and the Dow Jones, rose 0.1% as the markets in Europe closed.

Traders in the US have been waiting for Thursday’s inflation data, which is expected to decline CPI said Spreadex analyst Connor Campbell said.

The biggest surprise of the morning came from the Competition and Markets Authority, which announced that it was investigating Ryanair and British Airways into breaking consumer laws by not giving passengers refunds granted if they could not catch flights during the pandemic.

BA offered vouchers or rebooking, while Ryanair gave customers the opportunity to rebook, the CMA said. However, following the announcement, shares of both companies rose.

Ryanair was up 1.5%, while IAG, which owns British Airways, topped the FTSE 100 after gaining 3.3%. </ Upper Crust owner SSP saw its shares fall 1.9% after warning that pre-pandemic trading is unlikely to return in three years.

The shares of Simec Atlantis Energy fell 4.6% after the market was informed of problems with its largest shareholder, who is linked to the family of businessman Sanjeev Gupta.

The biggest climbers on the FTSE 100 were IAG, up 6.48p to 204.5p; AstraZeneca, 195p to 8,130p; Smith & nephew, down 33.5p to 1506p; GlaxoSmithKline, up 28.6p to 1,380.5p; and Informa, down 11.4p to 564.8p.

The biggest losers in the FTSE 100 were Thungela Resources, down 13.86p to 130.18p; Persimmon, around 111 pence at 3,113 pence; Renishaw, down 170p to 5,380p; 3i group, down 38p to 1,208p; and Evraz, down 18.8p to 624.8p.

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