London: Europe's main stock markets diverged at the start of trading on Friday, with London's benchmark FTSE 100 index profiting further from fresh falls in the pound.
The FTSE index gained 0.4 percent to 7,360.75 points as weakness for sterling boosted share prices of multinationals listed in London which derive much of their earnings in dollars.
In the eurozone, Frankfurt's DAX 30 dipped 0.1 percent to 12,555.96 points and the Paris CAC 40 rose 0.1 percent to 5,395.13 compared with Thursday's closing levels.
The pound fell further against the dollar after Bank of England Governor Mark Carney suggested that the BoE was not guaranteed to hike its main interest rate next month.
"Last night... Carney put an end to the debate saying that markets should not bet on a May rate rise," noted Jasper Lawler, head of research at London Capital Group.
Markets had been widely pricing in a quarter-point rate hike in May, to 0.75 percent, amid a pick-up in UK wages growth, but British economic data this week, including a sharp drop in retail sales, has dampened those expectations.
Comments
Comments are closed.