Pound down on Brexit fear

The FTSE 100 ended the week in the red yesterday as concerns over the prospect of rising US interest rates and the stand-off between Rome and Brussels conspired to hit stocks.

London’s top stock market closed down 35.34 points, or 0.49%, at 7,105.34.

Sterling, meanwhile, took a dive off the back of more Brexit uncertainty and the resignation of Jo Johnson from Theresa May’s government.

The British currency was down 0.6% versus the US dollar at 1.297. Against the euro, the pound was trading down 0.3% at 1.146.

In Europe, Germany’s DAX was up a meagre 0.02% while the French CAC fell slightly, going down 0.48%.

A barrel of Brent crude was trading at $69, a decline of 1.4%. The UK economy grew by 0.6% during the third quarter, but cracks are beginning to show as consumers cut back on spending.

Growth was primarily driven by strong retail sales during the World Cup and a recovery in construction in July. August and September were both flat, confirming economists’ fears that the heatwave’s boost to the economy faded towards the end of the summer.