FTSE Rallies As Trump Speech Sends Dollar Higher

This is source I found from another site, main source you can find in last paragraph

The FTSE 100 has fallen, hampered by a resurgent pound in the face of a weaker dollar and investor jitters over US president Donald Trump.

The UK blue-chip index fell 40 points, or 0.6%, to 7,158, with internationally-focused stocks hurt by the pound's rise, up 0.6% on the day at $1.245 and building on a rally that took hold following Trumps' inauguration address on Friday.

'The initial reaction to the first few days of Donald Trump's presidency suggests that investors may be losing patience with the new occupant of the White House,' said Kathleen Brooks, research director at City Index.

Mike van Dulken, head of research at Accendo Markets, said the dollar sell-off was 'inspired by president Trump's inauguration speech in which he adopted a very nationalist, protectionist rhetoric that risks rocking the globalisation boat and thus spurred safe haven demand,' he said.

'The result is unwelcome strength in peer foreign exchange majors like the pound, euro and yen, which hurts sentiment towards exports, whose goods are that little bit less competitively priced and international profits now worth that little bit less.'

Banks were the hardest hit on the FTSE 100, having been one of the strongest performing sectors following Trump's election, on hopes faster interest rises in the US could boost their net margins.

Royal Bank of Scotland (RBS) fell 2.3% to 215.9p,

Lloyds (LLOY) traded 1.7% lower at 64p and

Barclays (BARC) fell 1.6% to 223.7p.

Miners rose to the top of the index as metal prices received a boost from a fall in the dollar in which they are priced.

Antofagasta (ANTO) rose 3.7% to 790p,

Fresnillo (FRES) was up 2.9% at £14.43,

Anglo American (AAL) added 1.7% to £13.12 and

Glencore (GLEN) gained 1.6% to 323.5p.

The more domestically-focused FTSE 250 index weathered the pound's rise better, trading broadly flat.

Essentra (ESNT) was the biggest faller, down 5.2% at 419.8p after the speciality plastics maker said full-year profits could miss expectations.

SSP (SSPG) was the biggest riser on the index, up 5.4% at 411.8p as analysts at Jefferies raised their rating on the travel food group to 'buy' from 'hold'.

'We believe SSP will be a beneficiary of reducing dwell times in UK rail and of US structural changes, where the current monopolistic system is being challenged, and that its efficiency strategy will continue to support strong cash flow,' said James Lockyer.

House builders

Bovis (BVS) and

Berkeley (BKGH) were also among the risers, up 3.9% at 828p and 1.7% higher at £28.35 respectively as Schroders fund manager Andy Brough encouraged them to consider a merger.

Among small cap stocks,

Photo-Me International (PHTM) dropped 14.8% to 143.5p while 

Braemar Shipping Services (BRMS) tumbled 14.7% at 245p after warning of lower full-year profits.

Severfield (SFR) was the biggest riser, up 6.9% at 82.3p after the >Mail on Sunday tipped the steel group as a 'buy'.

This is source I found from another site, main source you can find in last paragraph

Source : http://citywire.co.uk/money/ftse-falls-as-trump-fears-send-dollar-lower/a986423



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