What led to the strong increase of the shares in the UK and what influences FTSE

The discrepancy in the movement of stock indices in Europe and the UK due to the likely BREXIT, Why?

Many companies that form's FTSE 100 conducted business outside the UK, as their cash flows are not in pounds, and dollars. These are as mining and commodity companies, which receive revenue from other UK countries and different from GBP currency.

The sharp fall in the pound from last year because BREXIT leads to much higher earnings in absolute size because their financial results are translated into pounds. So strong dollar and weak pound leads to better results at lower share prices that are in pounds. This is the reason for the strong growth in the FTSE 100 after BREXIT and then fall in GBP.

Every drop of the GBP resulted in an increase of the shares in the UK because they are traded in pounds and becoming cheaper for foreign investors.

Another reason for the increase in the FTSE is: increasing the competitiveness of some companies, but again because of the weak pound. So goods produced in the UK have become more competitive prices than those imported from the US or Europe.

We see that everything is due to the weaker pound. Therefore the movement of stock indices from here will again depend on the GBP. Much of the sharp decline of the GBP may believe that it has already accumulated, so you may think that the index is around its maximum value.

It remains speculative moment: what will be BREXIT, what will be the plan, how do Scotland, what will be the status of London as the financial capital: exactly this speculative moment can register last upward wave in stock index.

Read more:

• J.P. Morgan Chase beats profit and revenue expectations
• Goldman’s stock drops as profit falls below expectations
• The top 5 dividend shares for each investor
• NDX is possible to form a “Head and shoulder” formation
• Apple forms a triangle formation