FTSE 100 Soars Amid Sterling Slide and Business Output Concerns

The UK's FTSE 100 is heading for its biggest weekly gain in over six months, driven by a slide in sterling that benefits dollar-earning companies, despite weak business activity data pressuring banks. The currency decline aids international firms while Games Workshop rises on strong forecasts.

The UK's FTSE 100 surged towards its largest weekly gain in more than six months, buoyed by a decline in sterling that lent support to companies earning in dollars, even as banks faced difficulties due to weak business activity data.

By 1400 GMT, the FTSE 100 climbed 1.1%, aiming for a 2.2% weekly increase, marking its best performance since May 7. The pound dipped 0.5% to $1.25260 per dollar, marking its lowest since May, following reports of a shrink in British business output for the first time in over a year, alongside unexpectedly poor October retail sales.

This currency drop favored shares of UK-listed international companies like AstraZeneca, Unilever, and Reckitt Benckiser, which earn substantial revenue overseas. Nevertheless, banks such as Barclays, HSBC, and Lloyds Banking Group saw declines ranging from 0.5% to 3%, as they struggled with adverse data. Meanwhile, games maker Games Workshop soared 16% to an all-time high thanks to its optimistic half-year forecast.

(With inputs from agencies.)