Pound up on back of efforts to stop no deal

The pound edged higher as Jeremy Corbyn agreed to back a group of MPS in their attempts to halt a no-deal Brexit.

Sterling was 0.6 per cent higher on the euro at €1.107, and jumped 0.5 per cent versus the US dollar to $1.228.

It came after the Labour leader agreed to put a vote of no confidence in Boris Johnson on the back burner while cross-party efforts to stop the UK crashing out of the EU without a deal are prioritised. The currency has proved to be sensitive to Brexit-related news in recent months, with standard economic news taking on secondary importance.

David Madden, market analyst at CMC Markets UK, said the pound was lifted on hopes that the MPS would be able to prevent a no-deal exit.

Sterling “has continued to gain ground and is the best-performing G10 currency over the course of the last five days”.

The currency’s rise held back top shares in London, which were flat while their European peers made gains. The FTSE 100 closed down 5.4 points, or 0.08 per cent, to 7,089.58.

It was revealed after markets closed that BP – which had ended the session flat at 488p – has agreed to sell its entire business in Alaska to Hilcorp Alaska, in a $5.6 billion ($4.6bn) deal.

Elsewhere on the blue-chip index, distribution and outsourcing giant Bunzl said it was in talks with “a number of acquisition targets”. Shares closed 6p down at 2,027p.

Industrial chain firm Renold said it had completed a probe over misreporting of its accounts with the issue confined to its Gears unit. It ended yesterday’s session up 7.5 per cent at 24.4p.