Sterling slide helps to boost FTSE 100

Sterling started the week on the back foot yesterday, dragged down by weak manufacturing figures and yet more Brexit uncertainty.

The pound shed 0.6% versus the dollar to end the session at 1.288, while it fell 0.7% against the euro at 1.108.

A disappointing set of manufacturing figures helped drag the British currency into the doldrums, with output in the sector falling to its lowest level in more than two years in August following a collapse in overseas demand.

The Markit/CIPS UK Manufacturing purchasing managers’ index (PMI) showed a reading of 52.8 last month, down from 53.8 in July and well below economist expectations of 54.

The figure represents a 25-month low and means the sector is likely to fail to provide support to the wider UK economy in the third quarter.

The FTSE 100, meanwhile, feasted on the pound’s weakness, closing up 72.18 points, or 0.97%, at 7,504.6p and snapping a three-day losing streak.

A weaker pound boosts earnings for multinationals, which report in dollars.

WPP shares flatlined after the ad giant confirmed that Mark Read is to become chief executive, months after the departure of long-standing boss Sir Martin Sorrell in controversial circumstances.

Mr Read, who previously headed up WPP’s Wunderman business, had been acting as joint operating chief. The stock ended up 2p at 1,276.5p.