The Scotsman

FTSE knocked as Brexit hope boosts pound

- Market report Hannah Burley

The FTSE 100 was knocked as the pound surged following reports of a pending Brexit deal.

The pound, which has taken a Brexit beating over the past few weeks, rose as much as 1 per cent to around 1.291 against the US dollar.

It came amid reports that Britain and Germany are preparing to drop key Brexit demands, paving the way for a deal in the coming months.

Bloomberg said Berlin is ready to accept a less detailed agreement on Britain’s future trade ties with the EU in an effort to get a Brexit deal done.

However, Downing Street insisted there was no change in the UK’S position on the need for “proper” informatio­n about the future relationsh­ip to be available by the time Parliament votes on the withdrawal agreement.

Investors were also digesting data from the closely watched Markit/cips services purchasing managers’ index (PMI), which showed a reading of 54.3 in August, up from 53.5 in July. A reading above 50 indicates growth.

The pound’s boost dented the FTSE 100, which ended the day down 1 per cent at 7383.28 points.

In UK stocks, Barratt Developmen­ts jumped 9.6p to 545.2p after logging a 9.2 per cent rise in annual pre-tax profit to a record £835.5 million.

Royal Bank of Scotland rose 3.9p to 250.4p after announcing plans to swing the axe on another 54 branches, due to not being forced to sell its Williams & Glyn business.

The biggest risers on the FTSE 100 included Royal Mail, up 8.6p at 467p, and Associated British Foods, up 41p at 2,284.

The biggest fallers included WPP ,down49p at 1,147.5p ,and Burberry Group ,down84p at 2,116p.

 ??  ??

Newspapers in English

Newspapers from United Kingdom