Pound’s joys have negative effect on FTSE

Market report Scott Reid

The pound staged a bit of a comeback as weakness in the euro and dollar helped the UK currency shrug off some downbeat UK services data.

Sterling’s recovery weighed on the benchmark FTSE 100 index, however, which closed down 38.55 points at 7,372.92.

Brent crude prices jumped more than 2.5 per cent to some $53.50 per barrel as demand for oil continued to hold in the aftermath of tropical storm Harvey.

There are also concerns that oil production in East Asia could be hit by a possible war with North Korea, as tensions with the authoritarian state mount.

CMC analyst David Madden said: “Investors aren’t in a major panic about the North Korean situation but it is certainly on their minds.”

Aveva shares soared more than 25 per cent or 494p to 2,414p after the engineering firm confirmed it had struck a merger deal with the software arm of France’s Schneider Electric, creating a group worth more than £3 billion.

Redrow jumped 27p to 647p amid news of a 20 per cent rise in full-year revenues as the housebuilder defied fears of a housing market slowdown across the UK.

Strong sales helped Halfords shares rise 7.9p to 323.3p. The car parts-to-bicycles chain reported a 3.5 per cent rise in like-for-like retail sales in the 20 weeks to 18 August.

Shares in 888 Holdings fell 9.75p to 253.75p as the internet bookie recorded a half-year loss of $17.3 million (£13.3m) following a sanction for serious failings in its handling of vulnerable customers. Shares in fantasy miniatures maker Games Workshop rocketed after the firm told investors that strong firstquarter sales will deliver a boost to profits. The online bookmaker was pushed into a halfyear loss following a sanction for serious failings in its handling of vulnerable customers.