Equities By Region Indices UK

FTSE 100 watch: Stronger pound keeps lid on Footsie’s gains

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The UK benchmark index has climbed higher this Thursday, while underperforming the rest of Europe due to a rise in the pound. In individual movers, Burberry (LON:BRBY) has fallen near the bottom of the FTSE 100 leaderboard following analyst comments in the wake of the debut show of the retailer’s new chief creative officer.

Pound pegs back Footsie

As of 12:43 BST, Britain’s blue-chip index had added 14.03 points to stand 0.19 percent higher at 7,345.15, with investors hoping that the trade tensions between the US and China are losing steam.

“Investors are continuing to monitor the main political stories, which have been an important driver of risk appetite for much of the year, but the latest tariffs didn’t catch anyone off guard and so the impact has been marginal,” said Craig Erlam, analyst at OANDA, as quoted by Proactive Investors.

The Footsie’s gains, however, have been capped, with retail data boosting sterling.

Burberry shares under pressure

In individual movers, shares in Burberry have been sold off, as analyst weighed in on the group following creative director Riccardo Tisci’s debut runway show this week.

 Tisci “appears to be embracing the breadth and size of the Burberry brand and the responsibilities that go with it”, said JPMorgan Cazenove, as quoted by the Financial Times, adding that the bad news was that “in trying to please everyone he might be losing out on the brand new messages” and some of his daywear designs are “possibly too easy to copy by mass-market fashion contenders”. Burberry’s share price is 4.74 percent worse off at 2,011.00p.

The FTSE 100 was 0.20 percent up at 7,345.72 points as of 12:51 BST on Thursday, 20 September 2018.

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