Footsie jumps as ECB news drags pound

Market report Emma Newlands

The pound tumbled to an eight-month low against the euro after European Central Bank (ECB) president Mario Draghi signalled potential changes to its bond-buying programme could be discussed in the autumn.

The news sent the euro soaring, knocking the pound down 1.3 per cent to trade at €1.116 against the European currency, marking its lowest point since early November. Sterling was also in the red versus the US dollar, down 0.3 per cent at $1.298.

Investors have been closely watching the ECB for any news of monetary policy tightening, which would signal growing confidence in the eurozone economy. The drop in the pound sent the FTSE 100 higher by 59.96 points to 7,487.87.

In UK stocks, Unilever shares rose 75p to 4,389p after the consumer goods giant said pre-tax profits climbed 27 per cent to €4.6 billion (£4.1bn) for the first half of 2017, as efforts to boost profitability gathered pace despite volatile market conditions.

Easyjet tumbled 84p to 1,334p. While the budget airline upgraded its annual forecast, its full-year profits are still expected to fall below last year’s £495 million, which were hit by the plunging pound.

Premier Foods jumped 1.25p to 40p despite a 3.1 per cent drop in first-quarter revenue

The biggest risers on the FTSE 100 included Ashtead Group, up 51p to 1,710p, Provident Financial, up 71p to 2,390p and Next ,up103p to 3,783p. The biggest fallers included International Consolidated Airlines Group, down 24p at 595p, Anglo American, down 32.5p at 1,100.5p, and Shire, down 82.5p at 4,080.5p. The retail giant revealed a slump in profits but boss Mike Ashley insisted the group is still on track to become the “Selfridges of sport”. The company cautioned that profits would come in at the lower end of expectations following a slowdown in energy switching.