Pound’s dive sees Footsie finish higher

Sterling fell to a near four-and-a-half week low against the US dollar, as reports of a Tory plot to topple Theresa May cast fresh doubt over the Prime Minister’s future.

The UK currency slipped 0.5 per cent versus the greenback to 1.305, capping a tough week for the pound.

David Madden, a market analyst at CMC Markets UK, said: “Whether the Prime Minister is realistically going to face challenge or not is up for debate, but as far as the markets are concerned it reeks of uncertainty”.

But sterling weakness was a boon for the FTSE 100, which reached its highest level since early August. London’s blue chip index ended the day up 14.88p at 7,522.87.

In UK stocks, Easyjet was among the worst performers on the FTSE 100. Shares in the budget airline dropped 21p to 1,263p despite saying that its full-year profits would come in at the top end of forecasts following a record quarter.

Business materials firm CRH fell36pto2,774p amid reports that Summit Materials had made a rival bid for US cement manufacturer Ash Grove Cement.

CRH had offered buy the firm in a deal worth $3.5 billion (£2.68bn) last month, but the period set for gaining Ash Grove’s shareholder approval has since been extended. The biggest risers on the FTSE 100 were NMC

Health, up 116 at 2,838p, Mediclinic International, up 22p to 686p, Direct Line Insurance, up 8.6p to 364.3p, and Admiral Group ,up42p

at 1,853p. The biggest fallers included Centrica, down 3p to 174.5p, and Marks & Spencer

Group, down 5.4p to 348.7p.