FTSE takes a fall after pound rallies

Sterling’s rally held back London’s top shares again yesterday, after more political upsets prompted traders to hope for more roadblocks in the way of a hard Brexit.

The resignation of Boris Johnson’s brother Jo as both a minister and MP added an extra boost to the pound following a series of commons defeats reduced the chances of a no-deal Brexit on October 31.

The currency rose 0.68% against the US dollar to 1.233, while versus the euro it jumped 0.59% to 1.116.

The rise contributed to the FTSE 100’s decline, because the blue-chip index comprises many multinational companies which benefit from a weaker pound.

The FTSE 100 dropped 40.09 points, or 0.55%, to 7,271.17.

It was behind its European peers, as the German Dax jumped 0.85% and the French Cac climbed 1.08%.

Meanwhile, the global mood was slightly brighter amid hopes of progress between the US and China on their trade row.

News that Beijing and Washington are to hold highlevel talks in October boosted markets including oil, which shot higher.

At the close, a barrel of Brent Crude oil was trading at 61.86 US dollars, up 2.38%.

Retail giant Dixons Carphone suffered a stinging shareholder revolt over pay after almost a quarter of investors rebelled at the company’s annual general meeting.

Shares were up 1.4p to 115.5p at the end of the day.

The biggest risers on the FTSE 100 were Melrose Industries up 16.3p to 201.8p, NMC Health up 163p to 2,759p, St James’s Place up 46.8p to 971.6p and ITV up 4.8p to 121.2p.

The biggest fallers were Fresnillo down 44.2p to 723p, Diageo down 121p to 3,489p, BHP Group down 55.8p to 1,750.6p and Relx down 58p to 1,940p.