FTSE in red as pound shows fighting spirit

London’s top flight closed lower as sterling improved, while markets regained their nerve following a drop in Asian stocks overnight.

The FTSE 100 lost 52.16 p oints to close at 7,171.69, partly due tentative gains in the pound. The British currency climbed 0.18 per cent on the euro to €1.085, and was up 0.07 per cent to $1.215 dollars.

Fiona Cincotta, senior market analyst at City Index, said: “The pound was finding some support from suggestions that Jeremy Corbyn is planning an early vote of no confidence against Boris Johnson after the summer recess.”

Stocks were also suffering from losses in the Asian markets overnight, after China’s currency fell sharply on Monday.

In company news, David Wild quit as chief executive of Domino’s as he said that an ongoingfeudwi th franchisees is unlikely to be resolved until next year. Shares in the pizza delivery giant surged 3.9p to 237.7p as chairman Stephen Hemsley also announced he would step down.

Fast-fashion internet giant Boohoo has bought the online businesses of Karen Millen and Coast, in a move which is likely to see the brands disappear from the high street. An initial 62 job losses have been announced as part of the deal, while a further 1,000 are in danger across 32 UK stores and 177 concessions. Shares in Boohoo were up 9.4p to 239.5p.

Holiday Inn owner Intercontinental Hotels Group has seen half-year profits jump 25 per cent despite slowing growth in Greater China amid the trade war with the US and protests in Hong Kong. Shares fell 108p to close at 5,181p.