STOCKTRKR London Morning Market Report 9th January 2017
January 9, 2017 11:00 am
London shares continued to move higher this morning, with the FTSE100 still edging new record highs up over 7200, supported by a weaker pound after Mrs Mays comments over the weekend pointing towards a ‘hard’ brexit. Commenting on sky news over the weekend the prime minister said “People often talk… as if somehow we’re leaving the EU but we want to keep bits of membership of the EU. We’re leaving. We’re coming out. We’re not going to be a member of the EU any longer.”
At Spreadex, Connor Campbell said: “A lethally dull economic calendar couldn’t prevent the FTSE from finding its way to fresh all-time highs this Monday morning.
“The main driver of the index’s growth seemed to be the latest plunge from the pound, which dropped by 0.8% against both the dollar and the euro following Theresa May’s Sky News interview at the weekend. The Prime Minister’s comments were read as falling decidedly on the ‘hard’ end of the Brexit spectrum, with ‘control of [the UK’s] borders’ likely to be prioritised over continued access to the single market.
“This left sterling at a rough two-month low against both the dollar and the euro, something that in turn spurred the FTSE on by another 30 points.That means the UK index is hovering around the 7230 mark, around 10 points shy of the intraday peak it struck soon after the bell.”
The GBPUSD has continued to fall away off the back of these comments and is currently trading around the 1.21500 level, its worst level since last November.
Also in other news this morning the UK government announced that the UK taxpayer is no longer the biggest shareholder in Lloyds Banking Group (LLOY.L), recently cutting its stake to less than 6% which now leaves Blackrock Investment as the larger shareholder in Lloyds. The government has already expressed a desire to return Lloyds to 100% private ownership by the end of this year.
Chancellor of the Exchequer, Philip Hammond Commenting said “Returning Lloyds to the private sector and recovering all of the cash the taxpayer injected into the bank during the financial crisis is a priority for the government, Confirmation that we are no longer the largest shareholder in the bank and that we’ve now recouped over £18bn for UK taxpayers is further evidence that we are on track to recover all of the £20bn injected into the bank during the financial crisis.”
London shares continued to move higher this morning, with the FTSE100 still edging new record highs up over 7200, supported by a weaker pound after Mrs Mays comments over the weekend pointing towards a ‘hard’ brexit. Commenting on sky news over the weekend the prime minister said “People often talk… as if somehow we’re leaving the EU but we want to keep bits of membership of the EU. We’re leaving. We’re coming out. We’re not going to be a member of the EU any longer.”
At Spreadex, Connor Campbell said: “A lethally dull economic calendar couldn’t prevent the FTSE from finding its way to fresh all-time highs this Monday morning.
“The main driver of the index’s growth seemed to be the latest plunge from the pound, which dropped by 0.8% against both the dollar and the euro following Theresa May’s Sky News interview at the weekend. The Prime Minister’s comments were read as falling decidedly on the ‘hard’ end of the Brexit spectrum, with ‘control of [the UK’s] borders’ likely to be prioritised over continued access to the single market.
“This left sterling at a rough two-month low against both the dollar and the euro, something that in turn spurred the FTSE on by another 30 points.That means the UK index is hovering around the 7230 mark, around 10 points shy of the intraday peak it struck soon after the bell.”
The GBPUSD has continued to fall away off the back of these comments and is currently trading around the 1.21500 level, its worst level since last November.
Also in other news this morning the UK government announced that the UK taxpayer is no longer the biggest shareholder in Lloyds Banking Group (LLOY.L), recently cutting its stake to less than 6% which now leaves Blackrock Investment as the larger shareholder in Lloyds. The government has already expressed a desire to return Lloyds to 100% private ownership by the end of this year.
Chancellor of the Exchequer, Philip Hammond Commenting said “Returning Lloyds to the private sector and recovering all of the cash the taxpayer injected into the bank during the financial crisis is a priority for the government, Confirmation that we are no longer the largest shareholder in the bank and that we’ve now recouped over £18bn for UK taxpayers is further evidence that we are on track to recover all of the £20bn injected into the bank during the financial crisis.”
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