Economy 2 MIN READ

FTSE 100 opens lower as stronger pound weighs

August 15, 2023By Reuters

The UK’s exporter-heavy FTSE 100 index opened lower on Tuesday, dragged down by a stronger sterling after a record-high wage growth spurred worries of inflationary pressures, while retailer Marks & Spencer led mid-cap stocks higher.

British wages excluding bonuses were a record 7.8% higher than a year earlier in the three months to June, adding to worries for the Bank of England about long-term inflation, which could keep interest rates elevated for longer.

The benchmark FTSE 100 index was down 0.2%, while the pound rose as much as 0.28% to USD 1.2720, right after the data.

Mid-cap stocks rose 0.1%, with British retailer Marks & Spencer jumping more than 8%.

M&S raised its profit outlook, saying it was continuing to win market share in both its clothing, home and food businesses.

Retailers’ stocks rallied over 1%, leading sectoral gains.

(Reporting by Siddarth S in Bengaluru; Editing by Rashmi Aich)

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