Reuters: Hot Stocks: UK's FTSE slips, hit by sterling rise after ECB cut

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UK's FTSE slips, hit by sterling rise after ECB cut Nov 7th 2013, 15:39 Share this Email Print Reprints Thu Nov 7, 2013 10:39am EST * FTSE 100 slips as sterling rises after ECB cut * Stronger sterling would hit UK exporters By Sudip Kar-Gupta LONDON, Nov 7 (Reuters) - Britain's benchmark equity index fell for the third straight day on Thursday, which some traders attributed to a rise in sterling that could hit UK exporters following a rate cut by the European Central Bank. The blue-chip FTSE 100 index was down by 0.4 percent, or 27.22 points, at 6,714.47 points in late session trading - underperforming gains on other European stock markets such as Germany's DAX, which was up by 0.4 percent. The FTSE 100 had initially risen after the ECB cut its main interest rate to a record low of 0.25 percent. However, the index then fell back into negative territory. The pound rose against the euro after the European currency weakened in the wake of the ECB cut. The Bank of England earlier kept its key interest rate unchanged at a record low of 0.5 percent, and sterling rose to a 10-month high against the euro on Thursday. "The UK is in a different cycle. In Britain, the talk is actually moving to eventually raising rates, so many people are buying Europe today and selling the UK," said Darren Courtney-Cook, head of trading at Central Markets Investment Management. Some traders felt the FTSE might stall in November after the index rose to a 5-month high of 6,819.86 points in late October, although they felt any November pullback would then be followed by a rally in December through to the end of 2013. "There's still plenty of flows coming into the market, from the U.S. into Europe and from bonds into equities," said Chris White, head of UK equities at Premier Asset Management. (additional reporting by Alistair Smout and David Brett Editing by Jeremy Gaunt) Link this Share this Digg this Email Reprints

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