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| Version 1 | Version 2 |
|---|---|
| FTSE 100 hits record high as Brexit fears push pound below $1.23 | FTSE 100 hits record high as Brexit fears push pound below $1.23 |
| (35 minutes later) | |
| The FTSE 100 index has gone above its all-time intra-day high, boosted by a sharp decline in the value of the pound. | The FTSE 100 index has gone above its all-time intra-day high, boosted by a sharp decline in the value of the pound. |
| The pound has fallen to its weakest level since the financial crisis in early trading on Tuesday as worries persists over the UK’s economic prospects outside the EU. | The pound has fallen to its weakest level since the financial crisis in early trading on Tuesday as worries persists over the UK’s economic prospects outside the EU. |
| This sent the FTSE 100 index of top blue chip shares through its intra-day record high. | This sent the FTSE 100 index of top blue chip shares through its intra-day record high. |
| The index hit 7,129.21 - up 0.45 per cent or 31.68 points. | The index hit 7,129.21 - up 0.45 per cent or 31.68 points. |
| Its previous intra-day record was 7,122.74 which it reached on 27 April 2015. | Its previous intra-day record was 7,122.74 which it reached on 27 April 2015. |
| The index has been boosted by retailers such as Next and Marks & Spencer, up 4.2 per cent and 3.1 per cent, respectively. | The index has been boosted by retailers such as Next and Marks & Spencer, up 4.2 per cent and 3.1 per cent, respectively. |
| The smaller FTSE 250 index, or the 250 biggest companies in the UK, has gained 0.7 per cent - close to the record high struck last week. | The smaller FTSE 250 index, or the 250 biggest companies in the UK, has gained 0.7 per cent - close to the record high struck last week. |
| The decline of the pound has boosted the FTSE 100 as many companies make a significant proportion of their profits abroad. | The decline of the pound has boosted the FTSE 100 as many companies make a significant proportion of their profits abroad. |
| A weaker pound makes UK exports more competitive and some companies have reported a pick-up in overseas sales since the British vote to leave the EU in June caused sterling to tumble. | A weaker pound makes UK exports more competitive and some companies have reported a pick-up in overseas sales since the British vote to leave the EU in June caused sterling to tumble. |
| Neil Wilson at ETX Capital, said: "Brexiters might point to the FTSE’s rise as a sign of strength but this is very much a story of sterling weakness boosting foreign earnings – which account for around two-thirds to three-quarters of FTSE 100 company revenues." | |
| Sterling was down 0.61 per cent at $1.2290 against the dollar in early trading on Tuesday - this would be a new 31-year low for the currency, if you ignored the flash crash that sent sterling tumbling by more than 6 per cent on Friday. | Sterling was down 0.61 per cent at $1.2290 against the dollar in early trading on Tuesday - this would be a new 31-year low for the currency, if you ignored the flash crash that sent sterling tumbling by more than 6 per cent on Friday. |
| It was still trading below $1.23 at 1.2255 at 12:37 pm. | It was still trading below $1.23 at 1.2255 at 12:37 pm. |
| It dropped below €1.11 against the euro, adding to predictions from some analysts that it could reach parity in the next 12 months. | It dropped below €1.11 against the euro, adding to predictions from some analysts that it could reach parity in the next 12 months. |
| Sterling has now fallen about 18 per cent against the dollar since the referendum to lows not seen since 1985. | |
| The currency has been this year’s worst performer among 32 major currencies tracked by Bloomberg. | The currency has been this year’s worst performer among 32 major currencies tracked by Bloomberg. |
| Chris Beauchamp, Chief Market Analyst at IG, said the weak pound is “working its magic” on share prices again. | Chris Beauchamp, Chief Market Analyst at IG, said the weak pound is “working its magic” on share prices again. |
| He said: "UK investors will once again be cheering the impact of a falling pound, as the drop in sterling once again works its magic on the FTSE 100." | He said: "UK investors will once again be cheering the impact of a falling pound, as the drop in sterling once again works its magic on the FTSE 100." |
| Sterling has been under pressure for more than a week as Prime ministers Theresa May at the Conservative Party conference hinted she would opt for a “hard Brexit” settlement that sacrifices access to the single market and prioritises stricter immigration controls. | Sterling has been under pressure for more than a week as Prime ministers Theresa May at the Conservative Party conference hinted she would opt for a “hard Brexit” settlement that sacrifices access to the single market and prioritises stricter immigration controls. |
| Brexit Secretary David Davis dismissed calls for him and his fellow ministers to be “careful with their words” to prevent further volatility and sharp declines. | Brexit Secretary David Davis dismissed calls for him and his fellow ministers to be “careful with their words” to prevent further volatility and sharp declines. |
| Bank of England policymaker Michael Saunders said on Tuesday he would not be surprised if the pound fell further. | Bank of England policymaker Michael Saunders said on Tuesday he would not be surprised if the pound fell further. |
| HSBC analysts predicted the pound will fall to $1.10 against the dollar and hit parity against the euro by the end of 2017. | HSBC analysts predicted the pound will fall to $1.10 against the dollar and hit parity against the euro by the end of 2017. |