Pound’s slump persists ahead of PM’s talks

European stocks moved higher as the pound drifted lower ahead of Boris Johnson’s Brexit talks with German premier Angela Merkel.

The FTSE 100 closed 78.97 points higher at 7,203.97 at the end of yesterday’s trading.

UK and European stocks have been buoyed by traders buying up stocks ahead of the announcement of details from the Federal Reserve’s latest meeting.

In July, the Fed cut rates and investors are hoping that dovish language in the report could suggest further cuts by the central bank.

Sterling lost its gains from Tuesday’s positive comments from Angela Merkel, as the UK’s relationship with the EU remains uncertain, ahead of further Brexit talks.

The pound was 0.21% down at 1.214 versus the US dollar, and down 0.21% against the euro at 1.094.

In stocks, OneSavings Bank saw shares dip despite unveiling loan growth as it prepares to integrate Charter Court into its business after a £1.6 billion merger.

Shares in the company closed 17.6p lower at 337.8p.

EasyHotel saw shares rise slightly by 1.5p to 96p after bidders Ivanhoe Cambridge and property fund manager ICAMAP said they are set to take over the business despite objections from billionaire founder Sir Stelios Haji-Iannou.

The biggest risers on the FTSE 100 were Burberry, up 95p at 2,204p, Tui, 28.4p at 789p, Flutter Entertainment, up 250p at 6,684p and DS Smith, up 10.4p at 332.6p.

Biggest fallers were Phoenix Group, down 16p at 643.5p, RBS, down 2.6p at 181.9p, Legal & General, down 2.9p at 221.1p, and BHP, down 21p at 1,713.8p.