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British stocks spared heavy losses by plunging pound as U.K. economy shrinks

August 9, 2019

London stock markets were spared heavy losses on Friday by a plunge in the pound after data showed the U.K. economy contracted in the second quarter for the first time since 2012.

The FTSE 100 UKX, -0.05% slipped 0.1% on the weak economic data, along with fears of political instability in Italy, and ongoing concern about growing trade protectionism.

But stocks were spared further losses by a sliding pound as many companies in the blue chip index derive revenue from exports which benefit from a weaker currency.

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