Sterling hits three-week low vs. dollar

Sterling hits three-week low vs. dollar
Updated 28 May 2015

Sterling hits three-week low vs. dollar

Sterling hits three-week low vs. dollar

LONDON: Britain’s top share index outperformed pan-European equities despite disappointment over first-quarter UK growth data, thanks to some positive trading updates and an improving corporate earnings outlook.
The FTSE 100 index closed 0.1 percent up at 7,040.92, compared to a 0.6 percent fall on the pan-European FTSEurofirst 300 index that took a hit from pessimism over Greece’s ongoing debt struggles.
Sterling hit a three-week low against the US dollar after data confirmed the British economy grew 0.3 percent in the first quarter compared with the quarter before, disappointing many who had expected a bigger gain.
But some investors said UK equities were looking more attractive relative to the euro zone, having underperformed around Britain’s parliamentary election earlier this month.
“We continue to see value in the UK, which underperformed other European markets in the run-up to the election,” said Alan Mudie, head of investment strategy at Societe Generale Private Banking, citing the outlook for company earnings growth and current valuations.
UK mining stocks fell 0.2 percent, a drag on the commodities-heavy FTSE.