Economy data helps sterling as FTSE lags

Market report Hannah Burley

London stocks lagged behind their continental counterparts as better than expected UK economic growth data boosted the pound.

Eurozone stocks were positive after the European Central Bank announced it would keep interest rates on hold, but the FTSE ended the day in the red, dropping 3.66 points to 7,421.91.

This was driven by a stronger pound, which rose following figures showing the British economy grew marginally ahead of expectations over the three months to February, helped by businesses stockpiling ahead of Brexit.

Sterling was 0.3 per cent higher against the dollar at $1.310 and up 0.3 per cent versus the euro at €1.162.

Tesco led the FTSE 100 after full-year profits showed the grocer is making progress with its turnaround. Shares climbed 8.4p to 242.3p.

Boss Dave Lewis said: “After four years we have met or are about to meet the vast majority of our turnaround goals. I’m very confident that we will complete the journey in 2019/20.”

Asos saw half-year profits tumble as the online retailer blamed expansion costs and heavy discounting for hitting its performance. Its shares climbed 247p to 3,397p.

Fashion brand Ted Baker has announced the creation of a joint venture which will operate its shops and online channels in mainland China, Hong Kong and Macau. Shares were up 18p to 1,488p.

Like-for-like sales at tenpin bowling operator Hollywood Bowl were up 4.4 per cent during the six months to 31 March. Group revenue climbed 5.3 per cent in the period. Shares dipped by 4p to 216p.