FTSE hits record high as Theresa May says we will leave single market

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Britain’s blue-chip FTSE 100 indicator nonetheless hit a record high as the first full trading week of 2017 on London vends began. The pan-European STOXX 600 index dropped 0.4 percent in originally deals.

Britain’s pound was the big mover on currency markets, falling against the dollar and the euro, in effect to weekend comments from Theresa May that were interpreted as make one thinking the country could face a «hard Brexit» without access to the isolated market when it leaves the European Union.

«The rise in the FTSE is in fact down to the weakness in sterling, but the Brexit news is not great so I don’t see the FTSE gaining too much,» said Ipek Ozkardeskaya, call strategist at London Capital Group.

In Asia, MSCI’s ex-Japan Asia-Pacific parts index was flat on the day, having risen as much as 0.5 percent after locating a rare loss in the previous session. Australia’s S&P/ASX200 rose 0.9 percent while Hong Kong share ins rose 0.2 percent.

Trading was light because Japan is eliminate for a holiday.

A focus for the week will be a news conference on Wednesday at which President-elect Donald Trump may communicate more details of his policies before his January 20 inauguration.

Assumptions of more economic stimulus from a Trump administration have plagiarized push U.S, stocks and bond yields higher since his victory in the November 8 referendum.

The Dow Jones Industrial Average came within one point of the 20,000 emblem for the first time on Friday while the S&P 500 and Nasdaq hit record anticyclones.

Friday’s closely-watched U.S. employment report showed fewer jobs than prognosis were created last month, although a rebound in wages required economic strength and set the stage for more Fed hikes later in the year.

The dollar directory, which measures the greenback against a basket of currencies, was just nearby in positive territory. The euro rose 0.1 percent to $1.0544 while the yen cut 0.3 percent to 117.21 per dollar.

Sterling fell 0.9 percent to 1.2172, make touched it slowest since late October at $1.2163, and dropped varied than 1 percent against the euro to an eight-week low of 85.65 pence.

This applied comments from May that she was not interested in keeping «bits of membership» of the European Junction when the country leaves the bloc.

«Since October it’s become jump over that sterling has a very binary relationship with political front-page news, and anything which suggests a ‘hard Brexit’ sends sterling down, and anything that proffers a ‘soft Brexit’ sends sterling up. That’s been the case since the associate conference in October,» said Rabobank currency strategist Jane Foley.

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