Three-week high leap for FTSE 100

The FTSE 100 leapt to a threeweek high yesterday, with RollsRoyce helping drive the index north after announcing a sweeping restructuring plan aimed at saving £400 million per year.

London’s top flight rose 62.08 points, or 0.81%, to end at 7,765.79.

Investors warmed to the news, with shares rising 54.2p to 882.8p by the close.

The FTSE 100 was also helped by the European Central Bank, which said it would not hike interest rates until 2019, boosting stocks across the continent, as well as sterling weakness versus the dollar following US retail sales data.

Connor Campbell, financial analyst at Spreadex, said: “The UK index benefited from the pound’s downturn against the dollar, the strength of the US retail sales reading (and Wednesday’s Fed rate hike) outweighing the UK’s own retail beat.”

Sterling was trading 0.4% down against the dollar at 1.332, but rose by 1% against the euro to 1.145.

In stocks, Revolution Bars shares slumped after the firm issued a profit warning, saying it had been affected by both unusually hot and cold weather.

The bars business said its sales fell by 1.7% on a like-forlike basis in the second half to June 9, sending shares 11.6p lower to close at 145p.

Shares in Majestic Wine, meanwhile, went in the other direction after it swung to a fullyear profit.

The wine warehouse chain, with 210 branches in the UK and two in France, recovered to an annual profit of £8.3m for the 12 months to April 2, against losses of £1.5m the previous year. The stock closed up 9p at 459p.