FTSE 100 watch: Miners and stronger pound weigh on Footsie

on Nov 11, 2016

The UK benchmark index has fallen deep into the red in today’s session, pressured by a rise in sterling, and a selloff in mining shares in the wake of Donald Trump’s victory in the presidential race. easyJet (LON:EZJ) meanwhile has jumped, as Berenberg initiated coverage on the stock with a ‘buy’ rating.

As of 12:32 GMT, the Footsie had lost 85.08 points to stand 1.25 percent lower at 6,742.90. The index has been pressured by a rise in sterling which is weighing on London-listed exporters.
The pound’s “gains against the euro also suggest that investors are beginning to fret about the political situation in the Eurozone, with France especially facing its own Brexit/Trump in the form of Marie Le Pen and next spring’s election,” Connor Campbell at Spreadex said in an afternoon note.

Mining shares are also proving a drag on the index in today’s trading. Fresnillo (LON:FRES) is leading the sector lower, having shed 5.46 percent to 1,490.00p. Reuters notes that Donald Trump’s surprise win has rocked emerging markets amid worries that the President-elect could introduce protectionist policies relating to trade.
At the other end of the spectrum has been easyJet, whose shares have been in demand as analysts at Berenberg initiated coverage of the stock with a ‘buy’ rating and a price target of 1,250p.

“We believe easyJet has a fundamentally strong business model and that it will ultimately be able to navigate any bilateral issues arising as a result of Brexit,” the analysts pointed out, as quoted by Sharecast. easyJet’s share price is currently 1.83 percent better off at 1,057.00p.
**The FTSE 100 index was 1.12 percent down at 6,751.76 points as of 12:41 GMT on Friday, November 11, 2016.**

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