Pound grows after Tusk comments

The pound rallied yesterday following the agreement on a draft political declaration about the UK’s future relationship with the European Union.

European Council president Donald Tusk said the draft has “been agreed at negotiators’ level and agreed in principle at political level, subject to the endorsement”.

This paves the way for a special Brexit summit to go ahead in Brussels on Sunday, when leaders of the 27 remaining EU states are expected to approve the declaration and the withdrawal agreement setting out the terms of the UK’s exit.

The pound was up 0.72% to 1.286 US dollars, having hit 1.292 earlier in the session.

Sterling was also up against the euro, rising 0.56% to 1.128.

Meanwhile, the FTSE 100 was hit by the strong pound as many of the companies on the blue-chip index make the bulk of their money overseas.

The FTSE 100 index closed 89.91 points, or 1.28%, lower at 6,960.32.

A barrel of Brent crude was trading 1.08% lower at 62.75 US dollars.

A spokesperson said: “There are still concerns about the US’s rising inventory of oil, as well as fears about future demand in light of slowing growth in China.”

The biggest risers on the FTSE 100 were Just Eat, up 22.20p to 596.8p, Burberry up 64.50p to 1,819p, Royal Mail up 10.60p to 327.5p and easyJet up 25.50p to 1,160p.

The biggest fallers were Fresnillo down 110.20p to 802.4p, Centrica down 13.45p to 132.3p, Smurfit Kappa down 138p to 2,152p and Evraz down 31p to 491.4p.