Home Business News FTSE 100 was flat as investors await new Tory leader

FTSE 100 was flat as investors await new Tory leader

by LLB Reporter
23rd Jul 19 10:14 am

On Monday there was an eerie calm across the markets as investors and traders held their nerves as they await to learn who will be the next PM.

The day ended seeing the FTSE 100 had hardly moved as it closed up by 6.23 points at 7,514.93, it had moved less than 0.1%.

The pound was lower, down by 0.21% or 0.003 at 1.2478 dollars, and was down against the euro by 0.17% or 0.002 at 1.1127 euros.

Connor Campbell, financial analysts at SpreadEx said, “The currency (is) displaying a mild nervousness ahead of tomorrow’s Tory leadership race results.

“Those nerves could deepen as the week goes on, and Boris Johnson starts to make his mark as prime minister, namely by forming what will likely be a hard Brexit-leaning cabinet.”

David Madden, market analyst at CMC Markets UK said, “Traders have high hopes of a dovish update from the European Central Bank this week, and a rate cut from the Fed next week, and that has lifted sentiment.

“There is speculation the ECB will either cut interest rates on Thursday, or they will drop hints about looser monetary policy to be delivered in the next few months.

“Seeing as the Fed are widely expected to reveal some sort of interest cut later this month, the ECB might get out in front of them and move first, in a bid to soften the euro in advance of any potential Fed easing.”

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