London (awp / afp) – The London Stock Exchange was down on Friday morning (-0.47%), weighed down by headlines of multinationals suffering from the rebound of the pound due to hopes of an agreement on Brexit.
Around 0730 GMT, the FTSE-100 index of major stocks lost 34.09 points to 7.152,27 points.
The UK market was paradoxically slowed by investors' renewed optimism about the possibility of getting an agreement on Brexit.
These hopes were fueled the day before by a statement by British Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar believing that a path was possible to find a compromise before the planned date of Brexit on 31 October.
"It is difficult to see exactly how officials will be able to solve the problem of the Irish border" and "the optimism could quickly fade" if the European leaders are not convinced, says Ipek Ozkardeskaya, analyst at London Capital Group .
The pound sterling, a barometer of Brexit investors' mood, surged after these announcements, but this was not good news for the stock market, which is made up of many multinationals whose foreign earnings are losing ground. the value in case of firmness of the British currency.
MUTLINATIONALS TRINQUENT. The rise in the British currency reduces the value of results achieved in other currencies once they are converted online. Spirits maker Diageo lost 1.87% to 3.259.50 pence, Reckitt Benckiser health and health product group 2.06% to 6,048.00 pence, Pearson educational services specialist 1.01% to 687 , 80 pence and Burberry luxury brand 3.44% to 1,977.50 pence.
BRITISH VALUES CLIMB. These securities, heavily dependent on the UK economy, were enjoying hopes for an agreement on Brexit, which would be the least damaging scenario for the activity. The construction group Persimmon took 4.94% to 2,165.00 pence, the bank RBS 3.75% to 203.20 pence, the clothing chain Next 1.65% to 6,050.00 pence and that of DIY stores Kingfisher 3.27% to 199.10 pence.
WPP MADE GRAY MINE (-4.73% at 918.20 pence). The advertising giant bore the brunt of the downward revision of forecasts by its French competitor Publicis after a disappointing third quarter, which is threatening a bad pass for the sector as a whole.
jbo / fc