Footsie down again after sterling surge

The FTSE 100 fell for a second day after the pound surged to a ten-month high against the dollar as disappointing US inflation and retail sales data sent investors fleeing from the US currency.

The index ended the day down 35.05 points at 7,378.39 and David Madden, a market analyst at CMC Markets UK, said signs that US demand is dwindling gave sterling the edge over the US dollar.

He said that “meant a higher probability of a UK rate hike in December than there is from the US”.

Royal Mail shares tumbled 10p to 401p

following news that its workers will vote on proposals to reform the company’s defined benefit pension scheme, which the company had planned to close next year, amid hopes of averting strike action. Easyjet edged higher, by 2p to 1,411p, amid news that the budget carrier has applied for a new new air operator’s certificate in Austria that will allow it to continue flying in the European Union after Brexit.

Dixons Carphone fell 4.5p to 260p after the

company said it was selling its Spanish operations with proceeds set to be reinvested into the business.

Carillion shares made marginal gains after losing nearly two thirds of its market value earlier this week.

The troubled construction and infrastructure giant rose 0.7p to 56.15p, having announced it had drafted in HSBC as an adviser as the company embarks on a comprehensive review of its operations.