Weak British Pound Boosts UK FTSE 100; Focus on Fed decision – December 13, 2023 at 9:16 am

The export-heavy FTSE 100 was slightly higher in early trade on Wednesday, with sterling weakening after data showed the UK economy contracted in October, while markets awaited a decision from the Federal Reserve.

At 0807 GMT, the FTSE 100 index rose 0.1%, while the more domestically focused mid-cap FTSE 250 index added 0.3%.

The pound fell 0.3% after official data showed Britain’s economy shrank in October, testing the Bank of England’s commitment to its tough stance against announcing the lowest interest rate cut in 15 years.

Energy stocks lost 0.7% amid lower crude oil prices, which limited gains.

Later today, the central bank will announce its monetary policy decision, with consensus favoring keeping rates on hold.

In individual stocks, Entain said its CEO Jette Nygaard-Andersen will leave the group with immediate effect. Shares of the betting and gaming company rose 6%.