FTSE 100 watch: Footsie steady as investors digest political developments

FTSE 100 watch: Footsie steady as investors digest political developments
Written by:
Tsveta van Son
4th September 2019
Updated: 11th March 2020

The FTSE 100 has climbed into positive territory this Wednesday, holding steady with investors digesting the latest political news out of the UK. Asia-focused Prudential (LON:PRU) and Standard Chartered (LON:STAN) meanwhile have been in demand on the back of political developments in Hong Kong.

FTSE 100 holds steady

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As of 13:00 BST, Britain’s blue-chip index had added 26.76 points to stand 0.37 percent higher at 7,294.95. Sentiment has been positive this Wednesday as MPs defeated Prime Minister Boris Johnson yesterday, in an effort to prevent a no-deal Brexit.

“The road from here is likely to be very tricky, especially if PM Boris Johnson takes the path toward a snap election,” said Hussein Sayed, Chief Market Strategist at FXTM, as quoted by Reuters, adding, however, that “Johnson needs at least two-thirds of MPs to vote in favour of one, and so far, the Labour party doesn’t seem willing to take this risk”.

Proactive Investors meanwhile quoted Oanda senior market analyst Craig Erlam as pointing out that “recent developments, while not altogether unexpected, have slightly reopened the second referendum door if a new election sees the Conservatives underperform”.

Blue-chip risers and fallers

In FTSE 100 risers and fallers, the Pru is up 4.23 percent at 1,406.00p, while shares in StanChart are changing hands 3.23 percent higher at 645.00p, benefitting from media reports which have suggested that Hong Kong would move to withdraw an extradition bill which has resulted in months of unrest in the Chinese-ruled city. Burberry (LON:BRBY), which counts China as one of its key markets, meanwhile is 2.42 percent up at 2,239.00p.

Elsewhere on the index, Royal Bank of Scotland Group (LON:RBS) is outperforming the market with a 1.01-percent gain despite booking an extra charge for the payment protection insurance scandal.

The FTSE 100 was 0.36 percent up at 7,294.37 points as of 13:07 BST on Wednesday, 04 September 2019.

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