Friday, 3 November 2017

FTSE closes at new high on Friday

The benchmark FTSE 100 share index closed at a new high on Friday, up 5 points or 0.07% at 7,560.35.

Share prices were boosted by Thursday's fall in the pound as investors took in the prospect of only very gradual further rises in interest rates.

However, the pound regained a little of the lost ground on Friday, boosted by better-than-expected services data.

The UK services sector, which accounts for most of the UK economy, grew by its fastest rate in six months in October.

Over the course of the day sterling rose against the dollar, adding 0.17% to $1.3081 and against the euro, up 0.56% at €1.1264.
The pound had fallen to a near five-month low against the dollar on Thursday following the Bank of England's first interest rate rise in ten years.

While an interest rate rise might normally be expected to boost the currency's value, the Bank of England on Thursday reiterated that it would take a "very gradual" approach to raising interest rates further.

BBC       News.