London’s FTSE-100 has kicked off Tuesday’s session by nudging above the 7,000 level for the first time in almost 17 months as further weakness for the pound bolsters equity valuations.
Concern over the economic impact of Brexit is continuing to exact a hefty toll on sentiment and its’ worth noting that many are expressing concern over the inflated market which has pushed ratings out to unsustainable levels.
Intertek is topping the board off the back of a broker upgrade, whilst the housebuilders are also finding favour – the pound’s record weakness is likely to help encourage more overseas buyers into the market.
Gold prices continue to slide so this is weighing on the precious metals miners, but it’s worth bearing in mind that any slack in this market may prove rather short lived, especially if we do see a wholesale rerating of stocks globally.
Economic data is rather thin on the ground in the coming hours, but this won’t last, with a slew of high profile releases slated for tomorrow. Whether we see any further opportunistic bid talk from overseas suitors remains to be seen, but as the pound slides, stocks just keep on climbing.