RBS push FTSE 100 past 7,500 points
Better-than-expected sales see Royal Bank of Scotland shares jump 2%
by Abi Moses on 7th August, 2017 and updated 7th August, 2017 11:34am
The FTSE 100 Index passed the 7,500 point mark on Friday as better-than-expected half-year sales reports saw Royal Bank of Scotland shares jump 2% to 261.2p.
For the first time since 2014, RBS reported a profit of the first half of the year, a huge contrast to the £2bn loss posted in the first six months of 2016.
In a further boost to the firm's shareholders, RBS have revealed that they have begun their post-Brexit contingency plans and are in talks with the Dutch central bank regarding its existing banking licence in the Netherlands. Royal Bank of Scotland obtained its Dutch licence through its ill-fated takeover of ABM Amro, prior to the financial crash of 2007.
With Sterling weakening, particularly against the Dollar, many of the FTSE's multinational stocks benefited. Better-than-expected employment figures released in the US prompted the Dollar to rally on Friday. ETX Capital's senior market analyst, Neil Wilson, claimed the market's reaction to the US' report was "a lot of fuss over nothing."
Wilson added, "We've just seen wild gyrations in the market to a report that was pretty much as expected. The Dollar jumped as the report was a little ahead of expectations but there is absolutely nothing in this that changes the dial on the Fed or inflation."
In addition to RBS, Mediclinic International (up 29.5 to 756p) and Smurfit Kappa (up 62p to 2,279p) were the FTSE 100's big winners on Friday.
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