Weak sterling helps support Footsie index

Market report Scott Reid

London’s benchmark share index chalked up some reasonable gains as the pound slipped on expectations that the Bank of England may delay an interest rate hike.

The FTSE 100 added 30.7 points, or 0.4 per cent, to close at 7,398.87, while the pound fell by a similar percentage against the US dollar to $1.395.

Michael Hewson, chief market analyst at CMC Markets UK, said: “It’s been a fairly lacklustre start to the week for markets in Europe, though the weak pound has helped the FTSE 100 and FTSE 250 push up to their highest levels since early February.

“An easing of geopolitical tension has also helped on the margins, on reports that US Treasury secretary Steve Mnuchin might be heading to China to thrash out some form of truce on trade with Chinese officials.” Against the euro, the pound edged up 0.18 per cent to €1.141.

In oil markets, Brent crude prices climbed 0.89 per cent to $74.24 per barrel. Prices have been in flux since Friday, when US president Donald Trump said that oil group Opec was keeping prices “artificially high”, fuelling speculation that he might take action against the organisation.

In UK stocks, Capita’s share price surged despite its chief executive Jon Lewis announcing a £513 million loss. He also said the firm was tapping investors for £701m. Shares gained more than 13 per cent to close at 180.8p.

Shares in Safestyle tumbled 26 per cent to 59.4p after the double-glazing windows and doors firm issued a profits warning. The outsourcing giant is to tap investors for £701 million and embark on a new strategy after booking a hefty annual loss as revenues dipped. Shares in the shipping services giant tumbled as the group warned over profits after being blown off course by a “challenging environment”.