FTSE 100 spikes as Trump whistleblower complaint sinks Asian and US stocks
The FTSE 100 opened up again today after surging to an eight-week high yesterday, but later giving back some gains.
Read more: FTSE 100 rises as US-China trade talks boost European stocks
London’s main market climbed 0.96 per cent to 7,421.65 points as it opened, after the fallout from President Donald Trump’s whistleblower complaint hit Asian and US stocks.
It is the second successive day of gains after the blue chip index climbed 0.8 per cent higher to 7,351.08 yesterday.
It was helped by a falling pound, which traders sold off as the Bank of England signalled it would cut rates if Brexit uncertainty continues.
A drop in sterling usually boosts the FTSE 100’s exporters.
Asian markets fell to a three-week low, with MSCI’s broadest index dropping 0.35 per cent, after the whistleblower complaint was published, sending uncertainty rippling through stocks.
The Nikkei slipped 0.77 per cent while the Hang Seng Index fell 0.22 per cent overnight, as US stocks reeled from the revelations that Trump had asked Ukraine to dig up dirt on political rival Joe Biden.
The complaint also alleged the White House had tried to “lock down” evidence about Trump’s actions.
The S&P 500 fell 0.24 per cent while the Nasdaq lost 0.58 per cent yesterday, with the Dow Jones down 0.3 per cent.
Meanwhile, Germany’s Dax climbed 0.42 per cent to 51.06 and France’s Cac added 0.33 per cent to 5,639.37.
Read more: White House wanted to ‘lock down’ evidence of Trump’s Ukraine call
London’s positive FTSE 100 performance came as new figures showed UK consumer confidence rose in September, to minus 12 from minus 14. Despite this it is still in the red amid Brexit uncertainty.