Exporters
The FTSE 100 is still benefiting and the initial underperformance in the index, due to some largecap U.S. dollar-exposed names falling seems to have been overtaken by the general positivity in the markets.
In addition to the U.K. polls, U.S. President Donald Trump approved the first phase of a trade deal with China, averting the introduction of new tariffs on Sunday. That is giving a lift to cyclical stocks like miners and steelmakers, while oil companies are also up on a higher crude price.
Smallcap Stocks
The FTSE Small Capitalisation Index jumped 1.8% and the AIM 100 index rose 2.1%. Both are heavily domestically exposed and will benefit from the better outlook on Brexit and the U.K. economy.
“The greatest share price appreciation may have come through in mid caps initially, but we expect capital to waterfall down the market capitalization levels into small caps and micro caps going forward,” said Gervais Williams, the head of equities at Premier Miton Investors.
--With assistance from James Cone, Chiara Remondini, Kit Rees, Blaise Robinson and Lisa Pham.
This article was provided by Bloomberg News.