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FTSE 100 inches higher, as pound dips after London terror attack

U.K. stocks rose slightly in early action Monday, getting a
lift from a dip in the pound in the wake of a violent attack in
London over the weekend that was claimed by Islamic State.

The FTSE 100

UKX, -0.09%

 gained 0.1% to 7,554.15, while sterling

GBPUSD, -0.1086%

traded at $1.2869, down from $1.2891 late Friday in New York.
The British benchmark, which has been scoring record closes in
recent sessions, is on track for a fresh all-time closing high.

Last week, the gauge was flat for the week.

The pound is “expected to remain volatile this week against the
backdrop of the tragic weekend events in London and the
flakiness of the polls in predicting what the outcome of
Thursday’s General Election vote is likely to be, with the poll
gaps varying between 1 and 12 points in favour of the
Conservatives,” said Michael Hewson, chief market analyst at
CMC Markets UK, in a note.

“With fluctuations of this magnitude, Thursday’s outcome is
turning out to have all the predictability of a coin toss, and
as such it isn’t too surprising to see this being reflected in
recent movements in the pound,” he added.

The FTSE 100 tends to benefit from a falling pound, as the
weaker currency boosts the foreign-denominated profits made by
the index’s multinational companies.

The attack at London Bridge killed seven people and left dozens
injured. Police have arrested 12 people in raids prompted by
the attack, which interrupted the campaigning for Thursday’s
election and shook confidence in the country’s
counterterrorism strategy
.

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