MARKET REPORT

LONDON’S premier index fell just short of a new record as sterling’s weakness and robust UK economic data gave a lift to blue-chip stocks.

The FTSE 100 Index closed up 23.82 points at 7,543.77 but came in shy of the record all-time closing high of 7,547.63 achieved on May 26.

The top flight rebounded yesterday as the pound suffered a tumultuous session on the currency markets as the latest polling data from YouGov put the Conservatives just three points ahead of Labour.

Blue-chip companies, which report in US dollars or euros, get a lift on the FTSE 100 Index when the pound struggles because their earnings benefit from a more favourable currency translation.

However, sterling made a resurgence later in the session as traders became more confident that the Tories will return to power after June 8.

The pound was up 0.2% versus the US dollar at 1.289 and 0.5% higher against the euro at 1.150.

The London market was also given a boost from the latest manufacturing data.

The closely watched Markit/ CIPS UK Manufacturing purchasing managers’ index (PMI) showed a reading of 56.7 last month, down from 57.3 in April and above economists’ expectations of 56.5. A reading above 50 indicates growth.

Across Europe, Germany’s Dax was up 0.4% and the Cac 40 in France was 0.7% higher.

The price of oil but bounced back from a slump on Wednesday to rise by 1.1% to $51.30 a barrel.

The biggest risers on the FTSE 100 Index were Paddy Power Betfair up 350p to 8,420p, 3I Group up 32p to 927p, Convatec Group up 10.8p to 330.8p, Micro Focus International up 66p to 2,460p.

The biggest fallers on the FTSE 100 Index were Taylor Wimpey down 13.1p to 190p, National Grid down 39.5p to 1,050p, Mediclinic International down 27.5p to 781p, ITV down 4.1p to 191.6p.