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The FTSE 100 is ignoring Brexit fears right now

Feb 22, 2016, 13:55 IST

The FTSE 100 is popping after largely ignoring Brexit fears and recovering from trading weakness at the end of last week.

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The index is up over 1.17% at 6019.90 as of 8.26 a.m. GMT.

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However, the jump in the FTSE 100 could be to do with how badly sterling is doing.

Currently, sterling is taking a pounding after news that the Mayor of London Boris Johnson will campaign for Britain to leave the EU.

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Sterling experienced the sharpest one day fall in around six months by trading down 1.4% against the US dollar so far today.

Basically, Johnson - who is a hugely popular politician in the UK - added to uncertainty over the country's future in the bloc. One in three voters in the UK consider Johnson's position as "important" in deciding which way to vote, according to a recent Evening Standard poll.

A drop in sterling means it becomes cheaper for companies to sells goods and services abroad.

Meanwhile, European markets are all looking at flash PMI - meaning we're getting an early estimate for growth in February.

Growth figures for Germany, France, and the Eurozone as a whole are rolling in between 8 a.m. GMT (3 a.m. ET) and 9 a.m. GMT (4 a.m. ET), with specific breakouts for the service sector and manufacturing growth.

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