FTSE 100 rises above 7,000
On Friday, the FTSE 100 got closer to record peaks, as the sterling was still weak having briefly dropped to a fresh 31-year minimum during Asia trade, thus leaving financial markets stunned.
As other European indexes logged losses, the major British benchmark stood out with a 0.3% revenue, trading at 7,024.32. By the way, on Thursday, the London benchmark lost 0.5%, being worth 6,999.96.
While UK exporters have derived huge benefits from the drop in the sterling, the opposite applies to companies, dealing with import.
EasyJet PLC appears to be a perfect example of a British company whose margins are getting extremely squeezed by foreign currency effects. On Thursday, the budget airline announced that its full-year revenues will descend as much as 29%, mostly because of the sink in the sterling.
EasyJet stocks slumped 4.1% on Friday, having concluded the previous day down by about 6.9%.
Besides this, shares of International Consolidated Airlines Group PLC decreased 2.7%.