Banking boost for Footsie as pound gains
Market report Emma Newlands
The pound made gains despite a flurry of gloomy economic reports, while advances among bank stocks helped the wider market push higher.
Official figures showing disappointing trade data, but a stronger-than-expected performance from the manufacturing sector saw the pound make strong gains against the US dollar and hold firm against the euro. Sterling lifted 0.6 per cent to $1.32 and was flat at €1.12.
The FTSE 100 Index closed the session 30.38 points higher at 7,538.27 thanks to increases among banking stocks after a broker upgrade citing hopes of a softer Brexit.
Royal Bank of Scotland was the biggest riser in the sector, up by 5.3p at 277.5p followed not far behind by HSBC with a gain of 7.8p at 763.4p.
Among a string of economic reports, the latest data from the Office for National Statistics showed the UK’S trade deficit in goods hitting the highest level on record in August, dampening hopes that the weak pound is rebalancing the economy away from services towards exports. But the upbeat manufacturing figures offered a little hope and reinforced expectations for the Bank of England to hike interest rates as soon as November.
Shares in embattled BAE Systems fell 2p to 616.5p after it announced plans to cut almost 2,000 jobs.
The biggest FTSE 100 risers included Persimmon, up 63p at 2,761p, Burberry, ahead 40p at 1,843p, and Antofagasta, up 21p at 1,002p. The biggest fallers included Pearson, off 12p at 619.5p, Sage Group, down 12p at 719.5p, and Johnson Matthey, 55p lower at 3,329p. The pizza retailer shrugged off an “uncertain” consumer environment and its outlook was deemed “promising” by an analyst. The fashion chain posted a rise in profits for the first half but one analyst said investors focused on the firm saying conditions remain “challenging”.