FTSE 100 Rallies to Set Record Intraday High

FTSE 100

(Reuters) – Britain’s internationally-exposed FTSE 100 shares index rose to a record intraday high on Tuesday, helped by more weakness for sterling on currency markets.

The FTSE 100 rose as much as 0.5 percent to a record intraday high of 7,129.83 points, before settling back a touch to stand 0.4 percent higher by 1120 GMT. Its previous record intraday high stood at 7,122.74 points set in April 2015.

In the U.S. dollar terms, the FTSE 100 is still down 6 percent this year.

The FTSE 250 mid-cap index, whose companies are more exposed to the domestic UK economy, rose 0.8 percent and was also near that index’s record high.

Sterling slid back below $1.23 as senior officials and investors pointed to the potential for more falls for a market still in shock after Friday’s 10-percent flash crash, as concerns over Brexit continue to hit the pound. [GBP/]

However, that fall in sterling has given a boost to many of the FTSE 100’s international companies which earn much of their revenues in U.S. dollars, and therefore get a currency-related accounting lift as those dollars are converted back to pounds.

The FTSE 250’s companies have partly benefited from recent upbeat data that has led many forecasters to drop predictions that the British economy will slip into recession this year.

Some analysts also expect the drop in the pound to make British mid-cap companies cheaper and more attractive for potential overseas acquirers.