MARKET REPORT

STERLING fell to a one-week low against the dollar yesterday, as strong US jobs data and disappointing UK industry and trade figures weighed on the currency.

The pound fell nearly 0.7% against the greenback to 1.288, and dropped 0.5% to 1.129 against the euro as investors reacted to a string of economic releases from both sides of the Atlantic.

The currency first took a hit after figures from the Office for National Statistics (ONS) showed manufacturing output had fallen 0.2% month-on-month in May, while construction tumbled 1.2% and industrial production output dropped 0.1%. Meanwhile, the UK’s deficit in goods and services – measuring the gap between exports and imports – widened by £1bn to £3.1bn between April and May. Better than expected US non-farm payrolls data, which showed that 222,000 new positions were created in June, worsened the blow.

Jasper Lawler, head of research at London Capital Group, said: “Sterling was hit by a quadruple-whammy of bad news for British economy.”

The FTSE 100 ended the day higher by 0.19% or 13.64 points at 7,350.92 points, outperforming the French Cac 40 which dropped 0.14% and the German Dax which rose 0.06%.

Centrica shares were one of the top performers, rising 5.8p to 207.7p after a report by Wall Street Wires singled out the British Gas owner as a potential takeover target.

The biggest risers on the FTSE 100 were easyJet up 72p to 1,419p, Centrica, Rolls-Royce Holdings up 21p to 936.5p, and International Consolidated Airlines Group up 12.5p to 628p.

The biggest fallers were Royal Mail down 14.2p to 410.3p, ITV down 5.3p to 176.6p, WPP down 41p to 1,569p, and Kingfisher down 4.8p to 304.9p.