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ExplainersLab

The FTSE 100 is not the UK economy

published 13:17 · updated never, that’s the point
FTUK100 — prices, shape and the desk →

SONIA 3.73% · 21 Sept 2026 · Bank of England

Most of the index earns most of its revenue somewhere else, so a weaker pound often helps the number rise.

The FTSE 100 is heavy with miners, oil majors and banks that earn the bulk of their revenue outside Britain, because so much of the index sits in globally priced commodities and multinational earnings, so a weaker pound can lift the index just by making those overseas earnings worth more in sterling — the opposite of what most people assume a falling currency does to a local market.