FTSE rises as pound sinks to 10-week low against dollar

The main stock market in London slightly increased while the value of the pound dropped to its lowest point in 10 weeks. The British currency has been decreasing in value over the past week due to speculation among experts that the Bank of England will halt the recent increases in interest rates following its September gathering.

The dollar gained momentum on Friday, causing a decrease in value for other currencies, as Jerome Powell, the head of the Federal Reserve, indicated that there is room for further interest rate hikes.

The British pound experienced a decrease of 0.21% against the US dollar, amounting to 1.257 US dollars, while it saw a slight increase of 0.06% against the euro, reaching 1.165 euros at the end of trading in London.

London's multinational companies saw a positive impact from the exchange rate, causing the FTSE 100 to rise by 0.07% or 4.95 points, closing at 7,338.58.

In other parts of Europe, the other major markets also experienced slight increases, with the response to the speech of the Federal Reserve chairman being relatively calm, as it covered mostly well-known information.

Germany's Dax index experienced a slight increase of 0.07% throughout the day, while the Cac 40 ended on a positive note with a rise of 0.21%.

According to Alex Rudolph, a veteran market analyst from IG, Powell's main speech at the Jackson Hole conference was rather underwhelming since he attempted to satisfy both those advocating for a cautious approach and those advocating for a more aggressive stance.

“Following some initial ups and downs during the speech, stock market indicators went down once more. However, European indicators successfully concluded the week on a positive note.”

US stock markets began the day with a slight increase in response to the remarks made by Mr. Powell, following a period of decline towards the end of trading on Thursday.

In the latest updates from the company, Watches of Switzerland experienced a significant decline in its position after being greatly surprised by the announcement that its main provider had acquired a competing chain.

Rolex, the renowned Swiss watch manufacturer, has announced its initial venture into the retail industry with the acquisition of the Bucherer chain.

Experts cautioned that this decision might have repercussions for Watches of Switzerland, as more than half of their earnings were derived from the sale of Rolex watches. Consequently, the company's shares experienced a decline of 145 points, reaching a value of 548.5p.

Furthermore, the trading platform CMC Markets experienced a notable decline as it expressed concerns about its profits, attributing it to the unfavorable market conditions.

The blog stated that the earnings for the year are expected to range from £250 million to £280 million, which is lower compared to the initial estimate of £280 million to £290 million due to challenges faced specifically in the month of August.

Stock prices dropped by 11.8p to 110.2p at the end of the trading day.

Aston Martin Lagonda stocks experienced a boost as brokers at Jefferies enhanced their rating on the stock due to a strengthening financial situation and positive expectations for growth.

The high-end automobile manufacturer witnessed a surge in stock prices, with a 17.2p increase, reaching a total of 338p.

The cost of oil slightly increased during the period, but this provided little comfort as it ultimately concluded the week with a decrease due to concerns regarding China's economy and consequently, the demand for energy.

The price of a barrel of Brent crude oil increased by 0.9% to $84.2 in London's closing markets.

Tesco experienced the largest increase in stock value among the FTSE 100 companies, gaining 4.9 pence to reach 260.1 pence. Smurfit Kappa saw a rise of 56 pence, reaching 3,148 pence. Melrose Industries increased by 7 pence, reaching 508.8 pence. Intertek saw a gain of 56 pence, reaching 4,133 pence. Finally, CRH had an increase of 61 pence, reaching 4,508 pence.

The largest decliners on the market were Endeavour Mining, which dropped by 46p to 1,625p, Fresnillo, which fell by 12p to 549.4p, IAG, which decreased by 2.5p to 157.9p, Prudential, which declined by 13.8p to 946.8p, and Johnson Matthey, which slid by 21p to 1,543p.