In the past week the FTSE 100, the country’s benchmark stock index, has seen some substantial gains and on Tuesday it passed the 7,500 mark – this was the first time in its history it had reached this point.
This record high was partly due to the news that UK inflation had risen to its highest point in the last four years, which saw a drop in the value of sterling.
News on Oil
The previous day, rising oil prices along with greater infrastructure demand in China rallied the London index as high as 7,458. The increase in oil prices followed an agreement between Russia and Saudi Arabia to continue with cuts in oil production until March 2018. Mining company stock rose on the back of news from China of President Xi’s plans to develop transport links and infrastructure across the Asian region.
Benefitting from a Weak Pound
For those looking to make gains in their investments, the weak pound can be good news and it could be time to talk to their financial advisor about boosting their portfolio. There are a number of back office systems for financial advisers, along with integrated systems such as those developed by https://www.intelliflo.com/, which help businesses become more efficient and profitable by managing risks more effectively.
There were good gains for a number of British stocks, as the weaker pound saw them perform better than other European markets. When the pound is weaker many of the multinational companies on the FTSE 100 do particularly well, as their exports become more competitively priced, buoying the expected value of their overseas income.
Vodafone was one of the stocks to see a big gain in the last week, with the news that it was raising profit forecasts for this year.
In the past few months, mining stocks have seen particularly good gains and tourist focussed stocks will also experience a boost thanks to the weaker sterling, as more tourists will be attracted to the UK when their money is worth more.
It’s hard to predict too far in advance how the FTSE 100 will perform and if these gains will continue, but since the UK’s vote to leave the EU last year, the drop in sterling has been the key reason for the rise in the market.