FTSE ‘soured’ by sterling’s strong session

A rise in the UK’S currency helped push its markets lower as the pound bounced back from some of last week’s misery over Brexit.

Sterling jumped by more than 1 per cent against the dollar across the day as hopes emerged that the UK might avoid a no-deal Brexit.

Several Conservative MPS voiced concerns last week after the UK government admitted it was planning to break international law around its negotiations with the European Union.

OFX currency analyst S ebastien Clem - ents said: “The British currency rebounded after reports surfaced claiming Boris Johnson has reached a potential deal with Tory rebels, which would allow his team to begin rewriting the European Union withdrawal agreement. Of course, this would be a small win for Johnson, but with further negotiations with ministers on the continent looming, many who have expressed their unwillingness to compromise with the UK, Johnson faces a long road ahead.”

One pound now costs $1.2979, and €1.0966, a rise of 1 per cent and 1.3 per cent respectively. Meanwhile, the FTSE 100 fell ahead of the close yesterday afternoon. Earlier in the day, the index had been trading up slightly, as high as 6,119 points, but it ended at 6,078.48 – a fall of 27.06 points, or 0.4 per cent. Spreadex analyst Connor Campbell said the pound “soured” the FTSE’S session.

In company news, an almost 30 per cent rise in like -for-like sales since early July pushed Loungers shares up by 13.1 per cent to 173p, as the company benefited from the UK government’s support for restaurants during August.

British Air ways owner IAG dropped 0.9 per cent to 132.2p as BA boss Alex Cruz was up in front of MPS yesterday. Cruz said that people are still scared to travel and said the company is fighting for survival.

Rival airline Tui fared much worse. Its shares dropped 6 per cent to 317.4p after it revealed that it will refund all customers whose trips were called off because of the coronavirus.

The news that Redrow’s profits dropped by more than 65 per cent was enough to shave 1.75 per cent off its market value to close at 448.2p, after the housebuilder’s construction and sales were dented.