FTSE 100 watch: Footsie rallies on weaker pound

FTSE 100 watch: Footsie rallies on weaker pound

The FTSE 100 has kicked off September in positive territory, finding support in a weaker pound, and holding steady despite the latest US-China tariffs. In individual blue-chip movers, Marks & Spencer (LON:MKS) is underperforming the market with investors mulling over the likelihood of the high street retailer getting demoted from the benchmark index.

FTSE 100 rallies on Monday

As of 13:39 BST, the Footsie had added 91.59 points to stand 1.27 percent higher at 7,298.77. Sentiment has been upbeat at the start of September, with blue-chips with international exposure benefitting from a fall in the pound amid the ongoing Brexit turmoil.

“Expect fireworks as Parliament returns this week. If the rebels and Remainers want to stop the no-deal Brexit then this is the time,” said Neil Wilson, analyst at Markets.com, as quoted by Proactive Investors, adding while the EU might offer a last-minute olive branch, “the chances are slim given their principled approach to the sanctity of the single market and not wanting to throw Ireland away”.

Individual blue-chip movers

Shares in Marks & Spencer are underperforming the broader UK market, with the high street retailer expected to be demoted from the FTSE 100 following the index’s upcoming quarterly reshuffle later in the week. Goldman Sachs delivered a further blow to the company, reiterating its ‘sell’ stance on the shares. Reuters quoted the analysts as commenting that the recent trading patterns in the retailer “continued to be disappointing”. Marks & Spencer’s shares are currently changing hands 0.39 percent lower at 191.50p.

AstraZeneca (LON:AZN) meanwhile is outperforming the broader market rally, with investors cheering upbeat trial results for its cardiovascular treatments Brilinta and Farxiga. AstraZeneca’s shares are 3.18 percent higher at 7,551.00 points.

The FTSE 100 was 1.27 percent up at 7,298.87 points as of 14:06 BST on Monday, September 2, 2019.

By Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.

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