The UK stock market has been a currency play today. Sterling has taken some stick – down from $1.2483 to $1.2323. Why? We think that very powerful signals from FED board members indicating a 25 basis point rise in the FED rate is more of a likelihood than a possibility – hence the Dollar is attracting shed loads of support.
The FTSE 100 opened flat this morning. Market conditions have been somnolent, but Dollar related stocks have pushed on in places, led by Astra, GSK, Diageo, Unilever and Reckitt Benckiser. Some mining stocks have done well ahead of Rio results due tomorrow. BP’s results were a little light of expectation and the shares opened up down 2% but have lost more ground – down 3.37% at 3.24pm. The FTSE 100 is up 52 points at 7225. The Dow, as I write is up 80 points.