In the City, the FTSE 100 index has jumped by 40 points in early trading to 7321 – helped by a falling pound.
Gold maker Randgold are the biggest rise, up 1.7%, followed by packaging firm Bunzl.
Major exporters such as Rolls-Royce and AstraZeneca are also up, benefitting from sterling’s weakness. The pound has shed half a cent this morning, dropping back to $1.2425 (£1.00) ahead of today’s construction figures. However, the crisis in South Africa is pulling down companies with exposure to the country, such as insurer Old Mutual.
Mike van Dulken of Accendo Markets warns, “South Africa’s Rand has taken another dive overnight after S&P cut the nation’s sovereign credit rating to ‘junk’ in light of recent political upheaval. Keep an eye on the likes of FTSE-listed Old Mutual, Investec and Mondi which are all exposed to the currency and have already been troubled of late as a consequence”.
The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.
Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.
There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.
Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.