Weak pound proves a boost for FTSE 100

The FTSE 100 was lifted by the weaker pound yesterday following reports that the government doubts there will be a breakthrough in Brexit talks between Attorney General Geoffrey Cox and the EU’S chief negotiator Michel Barnier.

London’s blue-chip index closed 49.04 points, or 0.69%, higher at 7,183.43 while Germany’s DAX rose 0.22% and France’s CAC grew 0.14%.

Sterling was down 0.29% against the US dollar at 1.313 but rose 0.07% versus the euro at 1.162 at close.

The chief executive of British Airways owner IAG hit out at the government’s lack of Brexit progress, branding it “shocking” that the country still has no clarity on the future.

Willie Walsh also said in the company’s annual report that all the “credible forecasts” show that Brexit will have a negative economic impact.

IAG shares rose by 1p to 575p. Shares in Debenhams tumbled after the troubled retailer warned over profits as sales continue to come under pressure.

The department store chain said in an unscheduled update that its January statement claiming it was on track to deliver profits in line with market expectations is “no longer valid”. Debenhams shares fell 0.09p to 3.10p.

The biggest risers on the FTSE 100 were GVC Holdings up 46p to 697p, NMC Health up 82p to 2,938p and Fresnillo up 17.6p to 816.6p.

Biggest fallers were Intertek, down 192p to 4,996p, RBS down 6.4p to 259.9p, ITV down 3.25p to 134.25p, and Marks & Spencer down 6.3p to 276.8p.