MARKET REPORT

THE pound fell to a 31-month low yesterday, as the latest UK economic growth figures showed an unexpected contraction in the second quarter.

But even the currency’s slump could not lift the FTSE 100 – which usually benefits from sterling’s weakness – as the global economic mood darkened.

The pound was trading as low as $1.206 around lunchtime, before ending the day just under $1.208, down 0.54%.

This was its lowest level since January 2017.

The pound was also 0.7% lower against the euro at 1.077.

It followed data showing the UK’s first negative quarter of gross domestic product (GDP) since 2012, with a decline of 0.2% between April and June.

Fiona Cincotta, senior market analyst at City Index, said: “The outlook for the pound remains extremely fragile as the prospect of a no-deal Brexit increases.

“With the blame game between the EU and the UK in full swing, the chances of the two sides renegotiating the Irish backstop appears slim; instead preparations for a worse-case scenario, nodeal Brexit are being prioritised.”

Nevertheless, the FTSE 100 closed down by 32.05 points, or 0.44% lower, at 7,253.85.

Advertising firm WPP led Friday’s FTSE 100 firms as its shares jumped 66p to 981p after it performed ahead of analyst predictions.

Drugs giant AstraZeneca saw shares push 124p higher to 7,351p after it told investors that its top-selling drug, Tagrisso, had significantly helped patients with a specific type of lung cancer live longer without the disease worsening, following new testing.

The biggest risers on the FTSE 100 were WPP up 66p to 981p, Next up 158p to 6,016p, Segro up 13.8p to 763.6p, and

AstraZeneca up 124p to 7,351p.

The biggest fallers on the FTSE 100 were Evraz down 54.8p to 562.8p, Antofagasta down 40.4p to 829.2p, NMC Health down 72p to 2,023p and ITV down 2.75p to 107.8p.