MARKET REPORT

STERLING endured another rollercoaster yesterday, jumping after higher than forecast inflation and then plummeting on renewed Brexit fears.

The pound was trading flat at $1.315 at the London close, having at one point surged to its highest level since July when it touched $1.321.

It was buoyed by inflation growing more than expected last month.

However, British politics acted once again as the currency’s scourge, with Theresa May being told her Brexit plans need to be “reworked” as time runs out to reach a deal with the EU.

The FTSE 100, meanwhile, closed up 30.89 points, or 0.42%, at 7,331.12 as traders moved on from the US-China trade war.

In stocks, Tesco shares closed marginally up after the supermarket titan unveiled its new discount store format called Jack’s, as it attempts to take the fight to German discounters Aldi and Lidl. Shares ended up 0.7p at 235.8p.

By contrast, shares in rival Sainsbury’s closed down 3.8p at 316.9p after Britain’s competition watchdog launched the second stage of its investigation into its proposed £12bn merger with Asda.

Shares in B&Q owner Kingfisher tumbled as half-year profits were hit by woes in its French arm and amid consumer belt-tightening in the UK.

The retailer’s stock closed down 6.3%, or 16.6p, to 247p after it posted a 30% fall in statutory pre-tax profit to £281m for the six months to July 31, with profits down 14.8% on an underlying basis at £375m.

The biggest risers on the FTSE 100 were Antofagasta up 46.4p at 837p, Anglo American up 79.6p at 1,655.6p, Prudential up 61.5p at 1,725.5p and Fresnillo up 29.2p at 825.6p.

The biggest fallers on the FTSE 100 were Kingfisher down 16.6p at 247p, NMC down 106p at 3,330p, Severn Trent down 44.5p at 1,847p and National Grid down 21.4p at 773.9p.