MARKET REPORT

THE FTSE 100 Index lifted to a two-week high yesterday on the back of a weaker pound, which dropped following a downward revision to UK growth figures.

London’s blue chip index ended the day up nearly 0.7% or 49.94 points at 7,372.76, its highest level since mid-September.

It made gains on the back of a softer pound, as multinational firms on the FTSE 100 tend to benefit when foreign currencies are stronger than the pound.

David Madden, a market analyst at CMC Markets UK, said: “The GBP/USD lost ground overnight and the weaker-than-expected UK GDP (gross domestic product) numbers added to the decline.

“In the second quarter, UK GDP was 1.5%, while economists were expecting a reading of 1.7%, and the previous reading was 2%.”

Sterling fell 0.3% versus the US dollar to trade at 1.339 and dropped 0.5% against the euro to 1.134 in the wake of the data. The revision added to the pound’s woes, having first been knocked by Bank of England Governor Mark Carney’s warnings on rising consumer debt.

In UK stocks, troubled infrastructure giant Carillion plunged 13p to 51.25p after the firm revealed half-year losses of more than £1bn.

The biggest risers on the FTSE 100 were ITV up 6p to 174.7p, Anglo American up 34.5p to 1,339.5p, Antofagasta up 20.5p to 949p, and Persimmon up 53p to 2,582p. The biggest fallers on the FTSE 100 were Hargreaves Lansdown down 17p to 1,480p, Babcock International down 6p to 827.5p, and Randgold Resources down 35p to 7,315p.