The UK’s leading index was dragged down by Old Mutual, which had fallen by 2.3 percent, and Fresnillo, which shed 1.9 percent. There were some strong performers, however, with investors looking favourably on airlines after Monarch was bailed out by Greybull Capital. EasyJet was the top performer of the day, gaining 2.9 percent following a 500 million euro bond issue. IAG gained 1.8 percent, making it another of the days strongest performers.
The FTSE 100 had benefited from the weakness in the pound, and while the pound has gained against both the euro and the dollar during the early part of the day’s trading, it is still below $1.23, so more volatility could still be on the horizon.
The FTSE 100’s modest fall is good news, as some expected to see the index crash if the pound made a comeback. However, investors will be acutely aware of the fact that whatever happens in the short term, there is still the prospect of Article 50 being triggered, and the road to March is going to be a long one. What we are seeing now is anticipation and speculation. There is plenty of scope for bigger movements when Article 50 actually is invoked and we start to see the results of the Brexit play out in real time.
