Sterling helps FTSE swerve Europe’s woes

Market report Emma Newlands

Top-flight shares in London dodged a day of declines on European markets, as the weaker pound and some positive company updates supported the FTSE 100.

The blue-chip index finished the day 9.53 points or 0.14 per cent higher at 7,035.85.

Meanwhile, the eurozone braced for a possible crisis over the Italian budget weighing on sentiment in European markets.

David Madden, market analyst at CMC Markets, said: “The situation in Italy has the potential to trigger another round of the debt crisis, and the last thing the currency bloc needs is softening growth, which was confirmed today.”

On the currency markets, the pound was lower as traders reacted nervously to giveaways in Monday’s Budget. Sterling was down 0.51 per cent at €1.119, and versus the US dollar was trading 0.69 per cent lower at $1.270. Ocado was the biggest riser on the FTSE 100, up 39.8p to 840.6p, after the online grocer unveiled details of its deal with US retailer Kroger, several months after it was first announced.

Meanwhile, BP more than doubled profits in the third quarter after riding the wave of higher oil prices. The energy giant said underlying replacement cost profit – the market’s preferred measure – more than doubled year on year to the equivalent of £2.9 billion over the threemonth period. The company’s stock was trading 10.8p higher at 546p.

The biggest risers on the FTSE 100 included CRH, up 82p to 2,293p and Taylor Wimpey, up 5.4p to 160.8p. The biggest fallers included

Reckitt Benckiser, down 298p to 6,313p, and

Fresnillo, down 27.6p to 867.6p.