london stocks slump as pound gains on latest rate hike hint
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

London stocks slump as pound gains on latest rate hike hint

Arab Today, arab today

Arab Today, arab today London stocks slump as pound gains on latest rate hike hint

The pound surged higher Friday on another hint of a rate hike
New York - AFP

The London stock market slid Friday as investors shrugged off news of a bomb attack in the British capital and instead took their cue from the surging pound. 

Sterling shot above $1.36 when a Bank of England policymaker signaled a rate hike for "the coming months," after British borrowing costs were this week left on hold at a record-low 0.25 percent.

Markets reacted little to the attack on a London Underground train, which police were treating as a terrorist incident. A number of people were injured.

"Londoners and markets alike take these sorts of incidents in their stride," ETX Capital analyst Neil Wilson told AFP.

"The FTSE's drop today is by and large about the pound's rally, as that depresses the foreign earnings of lots of the big blue chips."

Wall Street stocks also shrugged off the London attack and yet another North Korean missile launch, as the Dow Jones Industrial Average closed at its fourth straight record, and the broader S&P 500 also edged to a new all-time high.

- North Korea missile -

Every market sector showed increases, despite reports showing Hurricanes Harvey and Irma had a big impact on US retail sales and industrial activity in August that is likely to cut economic growth in the third quarter.

"They seem to be looking past the economy.  They want nothing to rain on their parade," economist Joel Naroff said in a commentary.

Eurozone trading was muted on Friday with Frankfurt and Paris stocks slipping 0.2 percent.

Asian markets were rattled after Pyongyang fired its second rocket over Japan's Hokkaido in less than a month, just days after the UN Security Council imposed sanctions in response to its nuclear test.

Analysts said the rocket traveled farther than any other it has fired, adding to fears about the North's ability to strike the US mainland with an atomic bomb.

But by the end of the day the losses had either been sharply cut back or reversed, with Seoul's Kospi closing 0.4 percent higher.

 - 'Rampant pound' - 

The British capital's FTSE 100 index of top companies fell 1.1 percent as sterling rebounded to $1.3616 -- the highest level since June 2016 -- before slipping back to $1.3590 later.

"Sterling rose to its highest against the US dollar since Brexit with its best weekly return since February 2009," noted Jasper Lawler, head of research at London Capital Group.

The pound was catapulted higher after the Bank of England's most dovish rate-setter revealed that he may back a hike "as early as in the coming months."

The possibility of a hike as early as the next BoE policy meeting in November comes as other central banks consider similar moves with world growth slowly improving.

Investors next week will be focusing on the US Federal Reserve meeting for clues about whether a third rate hike is likely this year despite persistently low inflation.

- Key figures around 2100 GMT - 

New York - DOW: UP 0.3 percent at 22,268.34 (close)

New York - S&P 500: UP 0.2 percent at 2,500.23 (close)

New York - Nasdaq: UP 0.3 percent at 6,448.47 (close)

London - FTSE 100: DOWN 1.1 percent at 7,215.47 points (close)

Frankfurt - DAX 30: DOWN 0.2 percent at 12,518.81 (close)

Paris - CAC 40: DOWN 0.2 percent at 5,213.91 (close)

EURO STOXX 50: DOWN 0.3 percent at 3,514.84

Seoul - Kospi: UP 0.4 percent at 2,386.07 (close)

Tokyo - Nikkei 225: UP 0.5 percent at 19,909.50 (close)

Hong Kong - Hang Seng: UP 0.1 percent at 27,807.59 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,353.62 (close)

Euro/dollar: UP at $1.1946 from $1.1915 

Dollar/yen: UP at 110.86 yen from 110.31 yen

Pound/dollar: UP at $1.3590 from $1.3400

Oil - Brent North Sea: UP 15 cents at $55.62 per barrel 

Oil - West Texas Intermediate: UNCHANGED at $49.89

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

london stocks slump as pound gains on latest rate hike hint london stocks slump as pound gains on latest rate hike hint

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

london stocks slump as pound gains on latest rate hike hint london stocks slump as pound gains on latest rate hike hint

 



GMT 16:16 2014 Wednesday ,10 September

Samirah Ibrahim receives Saudi cultural attaché

GMT 09:32 2017 Sunday ,24 September

China confirms will limit oil exports to North Korea

GMT 19:56 2016 Saturday ,17 September

Typhoon Meranti death toll rises to 28

GMT 09:40 2018 Monday ,01 January

OIC Summit opens in Kazakhstan

GMT 06:37 2015 Monday ,07 December

Iran film directors protest colleague's jail term

GMT 18:37 2017 Friday ,25 August

Mental health issues should be prioritized

GMT 04:39 2017 Thursday ,31 August

Trump vows to right 'self-destructive' tax code

GMT 05:29 2017 Tuesday ,22 August

Celebrations across India on 71st Independence Day

GMT 10:54 2017 Wednesday ,11 October

Child obesity grows tenfold since 1975

GMT 02:31 2016 Tuesday ,06 December

Dubai Women Establishment delegation participates

GMT 04:29 2018 Wednesday ,19 September

North and South Korea: Kim and Moon hail new future

GMT 14:18 2013 Monday ,19 August

Newlywed Lebanese couple pose at car bomb site

GMT 11:11 2011 Friday ,12 August

Palestinian university ranks seventh in Arab world

GMT 15:16 2015 Wednesday ,26 August

UAE ambassador attends charity ceremony in Qalubiya

GMT 16:59 2016 Tuesday ,26 July

Hedge funds in new cycle of oil short-selling
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday