LONDON Oct 12 Deutsche Bank's equity
strategists on Wednesday said they expected the relative
outperformance of Britain's FTSE 100 to continue due to
more sterling weakness.
The FTSE 100 hit a record intraday high of 7,129.83 points
on Tuesday. It is up around 14 percent so far in 2016, although
the U.S. dollar value of the FTSE 100 has been hit by sterling's
slump on currency markets.
"We expect the FTSE 100 to continue outperforming both the
FTSE 250 and the STOXX 600 on the back of
further sterling weakness," they said in a research note.
The Deutsche Bank team said their currency strategists
expected more weakness for the pound given political uncertainty
over the process to take Britain out of the European Union, and
some signs of a slowdown in economic growth.
The team added they thought it unlikely that the Bank of
England would intervene to prop up sterling.
(Reporting by Sudip Kar-Gupta)