Rise in pound weighs on the stock market

The pound climbed against the dollar after a surprise fall in US inflation trumped a cautious outlook from the Bank of England.

A stronger pound weighed on the FTSE 100 index, which ended the day 31.79 points lower at 7,281.57.

Retailers Marks & Spencer, Kingfisher and Burberry were all hard hit, shedding 6.1p, 3.8p and 39p respectively following dire results from the John Lewis Partnership.

The department store chain unveiled a 99 per cent profit drop, mostly due to absorbing the costs of the weaker pound and matching competitor prices.

Supermarket Morrisons was 5.6p lower after suffering a 29 per cent drop in pre-tax profits despite seeing sales growth reach a nine-year high in the second quarter.

The fall was due primarily to a £51 million net adjustment, including a previously announced bond tender offer, the company said.

But bosses at the grocery chain were bullish on the future, saying they hope to avoid border delays in the event of a hard Brexit after authorities granted it permission for streamlined customs checks.

Ladbrokes owner GVC said profits were boosted by the World Cup in the first half of the year, helping offset woes linked to the Beast from the East storm. Shares in the company were down 4p to 1,058p.

The biggest risers on the FTSE 100 included mining group Antofagasta, up 13.2p at 772p, Anglo American, up 24.6p to 1,510.6p, Paddy Power Betfair, up 105p at 6,985p, and Glencore, up 4.4p at 299.5p.