It comes after the pound sterling jumped against the US dollar yesterday, taking an impact on the FTSE 100. The London index finished Monday in the red after the strong performance of the currency impacted stocks. The FTSE 100 is largely made up of businesses who largely trade on an international basis and are therefore vulnerable to changes in currency value.
Last night sterling was trading at $1.2855, up 0.48 percent on the day, while the dollar index fell 0.22 percent.
Stirling’s rise was largely due to the vote on Boris Johnson’s Internal Market Bill.
News of a possible revolt against Boris Johnson’s plans to break international law helped reverse some of the losses the currency racked up last week.
However, following the passing of the Bill in the late hours of yesterday evening, it is possible Stirling will drop again today, boosting the FTSE 100.
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9.45am update: FTSE 100 continues strong start to the day
The FTSE 100 has conitnued to rise in what is proving to be a strong morning for the London stock market index.
At 9.45am, the FTSE 100 was up 34.31 on the day at 6060.56.
8.30am update: FTSE opens strong
FTSE has jumped 28 points in the first 90 minutes of trading today.
The UK index closed at 6,026 but has already risen to 6,054 this morning.
7.20am: UK wakes to bleak job numbers
The number of UK workers shrunk by 695,000 during the pandemic, according to figures released by the Office of National Statistics (ONS) this morning.
The ONS said the UK workforce shrunk by 695,000 between March and August this year.
Unemployment now sits at 4.1 percent, which is 0.3 percent higher than a year earlier.
6.05am update: Re-cap of Monday’s trading
The dollar weakened and world stock markets rallied on Monday on encouraging signs of progress in developing a COVID-19 vaccine, while several multi-billion dollar deals also helped lift the spirit of investors after the downdraft in the past two weeks.
Gold jumped almost 1 PERCENT as the dollar slid and bond yields were stable as investors gauge how the US Federal Reserve will put its new approach to monetary policy into practice and keep its dovish stance at this week’s policy meeting.
Pfizer Inc and BioNTech SE on Saturday proposed expanding their Phase 3 COVID-19 vaccine trial to about 44,000 participants, while increasing the diversity of the trial population.
Drugmaker AstraZeneca also said on Saturday it has resumed British clinical trials of its COVID-19 vaccine, one of the most advanced in development, after getting the green light from safety watchdogs.
“The market reacts positively to any vaccine news,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “We’re going to see a lot more vaccines come out, and that is what really is helping the markets.”