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Markets rising on Brexit latest

FTSE 100 soars through 7,000 as sterling falls

London Stock ExchangeThe FTSE100 index of leading shares soared close to a new all-time high before falling at the close, as the pound sank and investors bought into companies with strong overseas earnings.

The index opened at 7,004 and hit 7,121.93 before ending the session at 7,074.34, up 90.82 points or 1.3%. Its previous high point was 7,122.74 and its record close was 7,103.98 on 27 April last year.

The FTSE 250 reached a new all-time high of 18,607 before closing 1.68% higher at 18,489.31.

Traders continued to back companies benefiting from lower export costs with Europe, robust manufacturing figures and the declining likelihood of more interest rate cuts.

Sterling fell to a 31-year low against the dollar, trading at $1.2780.

The index hit an all-time intra-day high of 7,122.74 on 22 April 2015.

Today’s uplift came against expectations of a lower or only modest rise when trading began, after US shares slumped. The dollar rose on stronger domestic data.

 

The International Monetary Fund has revised its forecast and predicted the UK will be the fastest growing of the G7 leading industrial countries this year.

It accepted that its prediction of a post-Brexit financial meltdown has proved to be too pessimistic.

However, while now saying that Britain will have a “soft landing” in 2016 with growth of 1.8%, it is sticking to its view that the economy will be hit by the EU referendum result and said expansion next year would be just 1.1%.



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