October 7, 2016 / 6:16 AM / in a year

UK's FTSE 100 futures rise after new slump in sterling

LONDON, Oct 7 (Reuters) - Futures on Britain’s top shares index rose on Friday, with a new slump in sterling expected to give a lift to the shares of internationally active companies, which often benefit from a weaker pound.

Britain’s FTSE 100 futures were up by 0.5 percent, outpacing a slight dip in futures on the Euro STOXX 50 and Germany’s DAX. France’s CAC futures edged up 0.1 percent.

Sterling recouped some of its losses after a precipitous plunge to a new 31-year low on Friday, but traders said it remained vulnerable to renewed selling due to fears Britain will pursue a “hard” exit from the European Union.

The FTSE 100’s international companies earn much of their revenues in dollars, and a weaker pound typically helps exporters as well.

But the slump in sterling has also impacted the dollar value of FTSE 100 stocks, a potential negative for overseas investors for whom the dollar is the benchmark currency. (Reporting by Sudip Kar-Gupta; editing by John Stonestreet)

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