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July 30, 2019, 7:14 a.m. EDT

Plunging pound and BP gains lift the FTSE 100 to 11-month highs

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By Callum Keown


Reuters
The pound has plunged on fears Boris Johnson could be leading Britain towards a no-deal Brexit

The FTSE 100 climbed to 11-month highs as the pound continued to fall and oil giant BP posted strong results.

The blue-chip index /zigman2/quotes/210598409/delayed UK:UKX -0.31%   edged up above 7,700 as sterling slid to fresh two-year lows on the increased threat of a no-deal Brexit.

Sterling /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.4103%   clambered back some of its initial losses on Tuesday.

What’s moving the markets?

The plunging pound and BP’s /zigman2/quotes/202286639/delayed UK:BP +1.82%   /zigman2/quotes/207305210/composite BP +2.84%   strong gains helped the FTSE 100 offset British Gas owner Centrica’s /zigman2/quotes/205228367/delayed UK:CNA -1.59%  damaging update and mining giant Fresnillo’s /zigman2/quotes/201300065/delayed UK:FRES -3.15%   /zigman2/quotes/201790365/delayed MX:FRES +5.00%    profit plunge.

Sterling dropped as low as $1.2120 on Tuesday to fresh 28-month lows before recovering some ground to trade at $1.2163.

The tumbling pound provided support for the internationally-exposed blue-chip index, while the more domestically-focused FTSE 250 /zigman2/quotes/210598417/delayed UK:MCX -1.57%   fell 0.1%.

AJ Bell investment director, Russ Mould, said: “Weak sterling has been fuelling a rally in the FTSE 100 as nearly three quarters of its constituents earn money overseas and so they benefit when translating that back into pounds.

“The index is now making a run at challenging the 12-month (closing price) high of 7,776.”

Which stocks are active?

British Gas owner Centrica plunged 13% as the company posted heavy half-year losses of £446 million and announced that CEO Iain Conn will step down next year. The utilities firm also slashed its dividend and revealed plans to exit oil and gas production.

BP shares rose 3.1% after its second-quarter profits of $2.8 billion beat expectations. The oil and gas giant’s quarterly production hit 3.8 million barrels per day, a 4% increase on the previous year.

Miner Fresnillo’s profits fell 69% in the first half of the year due to production problems and higher costs. The company’s stock plunged 10.5%.

/zigman2/quotes/210598409/delayed
UK : FTSE UK
6,630.52
-20.36 -0.31%
Volume: 997,627
March 5, 2021 4:59p
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/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3836
-0.0057 -0.4103%
Volume: 0.0000
March 5, 2021 4:59p
loading...
/zigman2/quotes/202286639/delayed
UK : U.K.: London
318.80 p
+5.70 +1.82%
Volume: 74.81M
March 5, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
4.77%
Market Cap
£63.20 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 26.77
+0.74 +2.84%
Volume: 21.17M
March 5, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
5.81%
Market Cap
$88.43 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205228367/delayed
UK : U.K.: London
51.94 p
-0.84 -1.59%
Volume: 30.71M
March 5, 2021 4:35p
P/E Ratio
60.40
Dividend Yield
0.00%
Market Cap
£3.10 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201300065/delayed
UK : U.K.: London
886.20 p
-28.80 -3.15%
Volume: 1.90M
March 5, 2021 4:35p
P/E Ratio
22.65
Dividend Yield
2.11%
Market Cap
£6.74 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/201790365/delayed
MX : Mexico
$ 284.55
+13.55 +5.00%
Volume: 0.00
Feb. 22, 2021 3:13p
P/E Ratio
26.20
Dividend Yield
1.93%
Market Cap
$212.60 billion
Rev. per Employee
N/A
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/zigman2/quotes/210598417/delayed
UK : FTSE UK
20,961.31
-334.92 -1.57%
Volume: 422,631
March 5, 2021 4:58p
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