FTSE lifted as concerns ease over Deutsche

Market report Emma Newlands

Sainsbury’s was left languishing in the red after investors pulled out of the retail giant following a second consecutive fall in quarterly sales. Britain’s second-biggest grocer slumped nearly 4 per cent to 241p after food price deflation took its toll.

However, the FTSE 100 Index swung back into positive territory, up 41.71 points to 6,849.38, after stocks rallied amid easing concerns over the financial health of Deutsche Bank. It came after a two-day sell-off sparked by fears that a hefty settlement proposal tabled by US authorities could deal a hammer blow to the German lender’s capital strength.

On the currency markets, the pound dipped back below the $1.30 mark after Minouche Shafik of the Bank of England’s monetary policy committee said further stimulus is likely to be needed as the UK stomachs a “sizeable economic shock” from the Brexit vote.

The biggest risers on the FTSE 100 Index included Sky, up 35p to 882.5p, and Dixons Carphone, up 9.1p to 365.7p. NEW YORK: Wall Street edged up last night after energy companies climbed following reports that Opec nations agreed to a deal that would limit oil production in an effort to bolster prices.

The Dow Jones Industrial Average closed up 110.94 points, or 0.61 per cent, at 18,339.24 while the broader Standard & Poor’s 500 index rose 11.44 points, or 0.53 per cent, to finish on 2,171.37. The Nasdaq Composite index edged up 12.84 points, or 0.24 per cent, to end on 5,318.55. The motoring group sped up on unveiling its first-half results, with trading income up, and a reversal of the fall in paid personal members of late. Its shares failed to deliver and were among the biggest fallers on the London market after Deutsche Post struck a deal to acquire UK Mail.