FTSE 100 nears record territory

The pound slipped further against the US dollar, lifting blue-chip stocks and pushing the London market towards record territory.

Sterling dropped back below the 1.30 US dollar mark, sinking 0.5% versus the greenback at 1.297.

It came after the American currency climbed following the nation’s job openings and labour turnover summary (JOLTS) report reaching a record high.

In a contrast of fortunes, the FTSE 100 Index closed up 10.79 points at 7,542.73, bringing it within a whisker of the all-time record high of 7547.63 recorded on May 26 and June 2.

Top-flight stocks, which report in US dollars or euros, get a boost on the FTSE 100 Index when the pound falls because their earnings benefit from a more favourable currency translation.

Despite slumping against the US dollar, the pound was marginally up against the euro at 1.105.

In UK stocks, betting giant Paddy Power Betfair admitted it had been knocked by the lack of a major football tournament and punter-friendly sports results.

The bookmaker, which disclosed on Monday that chief executive Breon Corcoran is to step down after 16 years, reported revenue growth of 9% to £827 million.

Earnings in the six months to June 30 rose 21% to £220 million, but the firm said that, despite strong first-quarter growth helped by favourable Cheltenham results, the following three months were “affected by the absence of a major football tournament and adverse sports results”.