(Reuters) - A weaker pound, buoyant overnight Asian shares and growing confidence in the financial sector helped pushed British shares higher and slightly ahead of their European peers on Monday.
The blue-chip FTSE 100 was up 0.6 percent by 0906 gmt while Paris and Frankfurt were both up 0.1% after strong US job growth had helped Wall Street close higher on Friday.“
GBP (sterling) has given up the gains made on Friday morning”, after the announcement of a deal between the European Commission and Britain on Brexit divorce terms, Rabobank said in a note.
A lower pound generally support the FTSE as the weaker currency translates into an accounting boost for large firms with overseas revenues.
Financials added the most points to the index as the Federal Reserve’s widely expected rate hike on Wednesday and a deal last week on banking rules fuelled positive sentiment.
HSBC rose 1.8%, Standard Chartered 1.7% and Lloyds 0.6%.
Anglo-South African investment bank and asset manager Investec was up 2.5% after it said its credit exposure to troubled South African retailer Steinhoff represented only a small portion of its balance sheet.