# FTSE 100 slips on stronger pound; PM race takes focus Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-24 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: UK's FTSE 100 Falls as Pound Strengthens and Oil Meta Description: Stay updated on the UK's FTSE 100 performance amidst political turmoil and economic concerns. Follow the pound's movements with us. URL: https://financedigest.com/ftse-100-slips-on-stronger-pound-pm-race-takes-focushtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-24t092619z2lynxmpei9n0b4rtroptp4britain-ftse-1736814987978-compressed.jpg) By Johann M Cherian (Reuters) -UK’s FTSE 100 fell on Monday as a stronger pound and weaker oil prices weighed on the blue-chip index, while investors kept a close watch on the race for Britain’s next prime minister. The exporter-heavy FTSE 100 fell 0.7% as the pound gained, with Rishi Sunak set to become Britain’s next prime minister after his rival Boris Johnson quit the race. He (Sunak) is not going to reduce taxes until they can be funded, so it’s going to be nothing that’s going to lead to a supply-driven growth that Truss tried to engineer,” said Patrick Armstrong, chief [investment officer at Plurimi Wealth](https://www.financedigest.com/norway-wealth-fund-to-consider-investing-in-unlisted-equities.html "Norway wealth fund to consider investing in unlisted equities"). There’s not going to be anything in terms of major changes, but the stability he will create will be a [welcome news for UK investors.”](https://www.financedigest.com/bayer-hits-8-month-high-as-investors-welcome-ceo-change.html "Bayer hits 8-month high as investors welcome CEO change") It has now been a month since the Truss government unveiled unfunded [tax cut plans](https://www.financedigest.com/uk-drops-plan-to-tax-sovereign-wealth-funds.html "UK drops plan to tax sovereign wealth funds") that battered investment confidence and put the government at loggerheads with the Bank of England. However, the [FTSE 100 is set to end the month higher](https://www.financedigest.com/londons-ftse-100-edges-higher-set-for-fourth-weekly-gain.html "London’s FTSE 100 edges higher, set for fourth weekly gain") as a historic reversal of the tax plans and hopes that former finance minister Sunak, the market’s preferred candidate, could win power instilled some confidence. [Ratings agency Moody’s on Friday cut its outlook](https://www.financedigest.com/stocks-euro-gain-amid-divergent-fed-ecb-rate-hike-outlooks.html "Stocks, euro gain amid divergent Fed, ECB rate hike outlooks") for the UK to “negative” from “stable” over the ongoing political turmoil, weaker growth prospects and high inflation. Meanwhile, a survey showed British businesses in October are [suffering their worst month since](https://www.financedigest.com/uk-factories-suffer-worst-month-since-may-2020-as-economy-stumbles-pmi.html "UK factories suffer worst month since May 2020 as economy stumbles – PMI") January 2021, when they were under a COVID-19 lockdown. Also weighing on mood, energy [stocks fell 2.2% as crude prices slid after trade data from China showed that demand in the world’s](https://www.financedigest.com/world-stocks-cling-to-upbeat-mood-dollar-stalls.html "World stocks cling to upbeat mood, dollar stalls") largest crude importer remained lacklustre in September. \[O/R\] Shares of other China-exposed stocks such as Prudential, HSBC and [Standard Chartered](https://www.financedigest.com/first-abu-dhabi-bank-reiterates-not-eyeing-offer-for-standard-chartered.html "First Abu Dhabi Bank reiterates not eyeing offer for Standard Chartered") dropped after Chinese President Xi Jinping’s newly unveiled leadership team heightened fears that economic growth will be sacrificed for ideology-driven policies. The domestically oriented FTSE 250 rose 0.2% Among single stocks, Mike Ashley’s Frasers Group edged up 0.6% after it said that it has increased its maximum exposure to German fashion house Hugo Boss to 840 [million pounds](https://www.financedigest.com/britain-announces-205-million-pound-auction-for-renewable-power-projects.html "Britain announces 205 million pound auction for renewable power projects") ($954 million). Pearson climbed [higher by 4.1% after the education](https://www.financedigest.com/five-reasons-to-start-saving-early-for-higher-education.html "Five Reasons to Start Saving Early for Higher Education") company said it was on track to meet its expectations for the year after nine months of strong trading, led by an “outstanding” result in English language learning. (Reporting by Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips and Maju Samuel) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---