FTSE 100 backs away from 8k as Pound rebounds

Since earlier this morning the rise above 8,000 in the FTSE 100 has now been pared back. That is despite a further rise in oil prices today. Brent Crude for June delivery has now extended its gains above $88 per barrel and closer to $89 just now. At the same time the UK S+P manufacturing PMI data has been revised higher, from 49.9 to 50.3. That has pushed UK yields a little higher and helped the Pound a little too and that in return has forced the FTSE 100 lower, from an earlier high at 8,015. The index has now dropped back towards 7,975, as this recent news forces an interim bout of short-term profit-taking. The geopolitical situation in the Middle East has deteriorated significantly over the past 24 hours and that could yet prove to be a headwind for all the major global markets and not just the FTSE 100. Of course that is very much dependent upon escalation inside that region, but the latest developments have upped the anti in that respect. The FTSE 100 is currently trading at 7,976