The main shift as Monday went on was that the FTSE trickled into the red, the UK index now sitting around 7325. Normally the relative lack of movement from the FTSE wouldn’t be something to note; however, as things stand the index is in danger of ending both its consecutive all-time high hitting close and positive close record runs, which currently stand at 12 and 14 sessions respectively.
While the FTSE is being supported by its mining stocks, losses for its oil and banking stocks helped supress interest in the index. A 1.1% decline for BP was inspired by doubts over the likelihood of OPEC abiding by the output cut it announced last year, while a smattering of red in its banking sector was assumedly brought about by the stocks being disgruntled at the prospect of the UK leaving the single market. Those same fears fuelled sterling’s slump this Monday. Though the pound managed to keep away from the lows it saw earlier in the session, the currency still fell by 1.1% against the dollar and 0.7% against the euro.
Sterling is set to dominate the discussion once again tomorrow, with all eyes on Theresa May’s much-anticipated Brexit speech. Considering how sharp the pound’s fall was this Monday it may have a bit of room to recover on Tuesday. It has already processed the main thrust of what May will outline, meaning that if the PM provides a bit more detail about the UK’s strategy heading into talks with the EU (even if it’s just a few crumbs) then the currency could rise on the increase in clarity.
