The FTSE 100 is up by 0.23% to 7,146.12 during the morning session, as its struggled to gain momentum, even though its major miners made solid ground on the back of rising commodity prices. The index added just enough to keep it in the ballpark of a post-pandemic high.
“Reports that the UK government is pushing ahead with its lockdown-easing plan – regardless of concerns over the Indian Covid-19 variants currently circulating (and, in some areas, surging) – gave the pound a shot in the arm,” said Connor Campbell, financial analyst at Spreadex.
From May 17 up to six people, or two households, will be able to meet indoors, while cinemas, restaurants and pubs will be able to have customers mix inside.
“This appeared to counter any concerns the currency may have had over the SNP’s renewed push for a referendum on Scottish independence and sent the pound up 0.5% against the dollar and 0.7% against the euro,” Campbell said.
“Despite the euro’s losses the Eurozone indices weren’t any more enthusiastic than the FTSE. The DAX was unchanged, a smidge under 15,400, with the CAC a bit better, rising 0.3% to 6,370.”
“After closing at a record high on Friday – the disappointing nonfarm jobs report likely means the Fed will hold off a bit longer before discussing tapering its current stimulus – the Dow Jones is set to go again this afternoon.”
FTSE 100 Top Movers
Mining giants Rio Tinto (3.53%), BHP (3.29%) and Glencore (2.20%) are the top risers on the FTSE 100 so far as the price of copper and iron ore both jumped.
At the other end, IAG (-2.18%), Intertek (-1.79%) and Flutter Entertainment (-1.73%) saw the biggest falls on the index.
The Pound
The British Pound made a flying start to the week on Monday as investors seem reassured that the political climate will remain calm. The Scottish National Party, led by Nicola Sturgeon, won 64 seats in the Scottish Parliament election, one short of a majority.
The Pound-to-Dollar rate rose to $1.405, its highest point since the middle of February, while the Pound-to-Euro rate also rose €1.15819. If Scotland gains its independence from the UK then a question would be raised of what the future of the currency would be, as well as the impact on British companies.