Pound slides amid May’s last stand deal

The FTSE 100 rebounded on the back of a falling pound, after it was weakened by intense pressure on Theresa May’s leadership.

London’s leading index closed trading up 5.27p at 7,334.19p.

Sterling tumbled amid rumblings that Conservative Cabinet members are making moves to oust Prime Minister Theresa May.

The pound slid to its lowest in four months as the Prime Minister pleaded with MPs to let her fourth Brexit deal pass.

In wider economics, UK consumer price inflation edged up to 2.1% from 1.9%, but political uncertainty has driven movement in the currency.

The pound dropped 0.34% to 1.267 versus the US dollar and decreased 0.3% to 1.136 versus the euro.

Tensions between the US and China appeared to calm in recent days, but European markets remained unsettled.

David Madden, market analyst at CMC Markets UK, said: “Trade concerns are lingering and that is why stock markets are largely mixed.

“The dust has settled in relation to the Huawei situation, but traders are wondering will Beijing hit back at the US. Dealers are on edge.”

The German Dax rose by 0.21% and the French CAC fell by 0.12%.

The price of oil slid in the wake of the latest Energy Information Administration report, which showed a jump in US stockpiles.

The price of a barrel of Brent crude oil fell by 1.8% to 70.7 US dollars.

Biggest risers on the FTSE 100 were Smurfit Kappa Group, up 120p at 2,305p, DS Smith, up 12.1p at 333.1p, Hikma Pharmaceuticals, up 52.5p at 1,743.5p, and Coca-Cola HBC, up 85p at 2,854p.

Biggest fallers were M&S, and EasyJet, down 57.4p at 927.2p.