Footsie climbs on the back of weaker pound

The FTSE 100 was lifted by the weaker pound, closing 49.04 points higher at 7,183.43.

Sterling was down 0.29 per cent against the dollar at $1.313 but crept up 0.07 per cent versus the euro at €1.162 at the London market close.

Gloomy Brexit headlines were responsible for sending sterling lower against the greenback for the first time in a week, according to Fiona Cincotta, senior market analyst at City Index, who said: “We expect the pound to remain under pressure across the week as investors start positioning ahead of next week’s Brexit voting bonanza.”

In corporate news, outsourcing giant Interserve rejected a revised restructuring package tabled by one of its key shareholders, renewing fears that the firm could collapse.

Interserve said a proposal received from New York hedge fund Coltrane, which owns 27 per cent of the firm, would risk the future of the company together with “its employees, pensioners, customers and suppliers”. Shares closed up by 2.1p to 17.9p.

Willie Walsh, chief executive of British Airways owner IAG hit out at the government’s lack of Brexit progress, branding it “shocking” thatthecountrystillhasnoclarityonthefuture. IAG shares rose by 1p to 575p.

Shares in Debenhams closed 0.09p lower at 3.10p after the troubled retailer issued its fourth profit warning in a year while locked in restructuring talks with its lenders.

British American Tobacco is to take a £436 million hit after it lost an appeal in a Canadian court case brought by disgruntled smokers. BAT shares were up 29p to 2,900.5p.