Footsie edges down after pound jumps

Market report Perry Gourley

A jump in sterling following comments by a monetary policy committee (MPC) member about interest rate rises contributed to the Footsie finishing the session in the red.

London’s blue-chip index ended the day nearly flat, down 3.49 points at 7,413.44, with fallers including Astrazeneca, down 179p to 5,013p, amid rumours that the pharmaceutical giant’s chief executive Pascal Soriot was leaving the company to join Israeli drug firm Teva Pharmaceutical Industries. Astrazeneca said it did not comment on market rumour or speculation.

The index was also knocked by a stronger pound after Bank of England MPC member Ian Mccafferty signalled he would continue to push for an interest rate hike.

David Madden, a market analyst at CMC Markets UK, said: “Mccafferty has a track record of being a hawk … The UK central bank appears to be divided over its monetary policy, and while there is division the pound will remain volatile.

“The hawks are in a minority at British central bank, but the to-ing and fro-ing will keep traders on their toes.”

BT Group shares jumped 11.5p to 301.6p, making it the biggest riser on the FTSE 100. It comes after the company inked an agreement to roll out 100 EE concessions in Sainsbury’s and Argos stores by 2019.

Burberry shares rose 39p to 1,669p, as investors continued to celebrate news of a 4 per cent rise in like-for-like sales in the first quarter.

Asos shares fell 51p to 5,759p despite reporting a 32 per cent rise in quarterly sales in the four months to 30 June, driven by strong growth in the US and Europe. The video game retailer confirmed that sportswear and sports equipment retailer Sports Direct had acquired a 25.75 per stake in the company. Shares in the drugs giant fell amid rumours that its chief executive was leaving the company to join Israeli drug firm Teva Pharmaceutical.