Pound soars after hint

London’s premier index sunk deeper into the red yesterday, while the pound soared after Bank of England governor Mark Carney hinted at a potential interest rate rise.

The FTSE 100 Index was down 46.56 points at 7,387.8, with multi-national stocks feeling the heat as sterling surged 1% against the US dollar at 1.294. The UK currency clocked gains versus the euro, rising 0.7% to 1.138, as Mr Carney suggested interest rates could rise if wages firm and the economy is boosted by stronger business investment.

The price of oil was 0.9% higher at $47.05 a barrel after US crude production eased back.

Outsourcing firm Bunzl lifted 1%, or 34p to £23.43 following a trading update which said revenue would rise, thanks to a boost from new business in the US.

In the second tier, retailer Dixons Carphone shed 2.2p at 293.7p despite pre-tax profits of £501million during the year to April 29, up from £457million in 2015-16.