FTSE 100 futures drop 0.7% despite losses in the Pound

A weak Pound is not going to help UK stocks today, suggests FTSE 100 futures which currently trade 0.70% or 56 points lower on the day.

The British Pound and the Footsie futures dropped after an exit poll projected a hung parliament following Britain’s general election Thursday. That would be a crippling political defeat for Prime Minister Theresa May’s Conservative government. For markets, it would mean a whole new set of Brexit uncertainty.

For the last one year, the stocks have cheered weakness in the Pound. This is because, the mining-heavy index is comprised of industries, which have international earnings. However, the inverse relationship may not hold ground in case of a hung parliament.