Pound stages recovery to knock FTSE

Stocks in London suffered as sterling made its first gains for five days, bouncing back from a two-year low.

The FTSE 100 closed 0.8 per cent lower at 7,586.78 points, while the pound was up 0.5 per cent at $1.221 versus the dollar, and down 0.26 per cent at €1.112 against the euro.

Connor Campbell, financial analyst at Spreadex, said: “Somewhat against the odds, the pound rebounded on Wednesday, a lack of good news not preventing the currency from dragging itself away from the week’s multi-year lows.”

In company news, a larger than expected provision for PPI has seen Lloyds Banking Group miss expectations on its second quarter profits, driving shares 3.2 per cent lower to 53.33p.

Budget airline Ryanair said up to 900 jobs could be at risk amid a drop in earnings as the group faces the effects of higher fuel costs.

Chief executive Michael O’leary told staff in a video message that the airline will do its best to minimise job cuts, but some were “unavoidable”. Shares rose 2.3 per cent to close at €9.71.

Meanwhile barr att developments boss Davidthomas has cashed in more than a third of his shares in the housebuilder, pocketing £3.3 million. Shares fell 1.9 per cent to 645.2p.

Finally, Ladbrokes Coral Group is being hit with a £5.9 million penalty package for “systemic failings” in its anti-money laundering and social responsibility safeguards.

The Gambling Commission said consumers had been harmed and stolen money had “flowed though the business” due to “unacceptable” shortcomings. Shares in owner GVC lost 2.7 per cent to close at 591.6p.