FTSE 100 supported by weaker pound

The FTSE 100 has emerged as a top performer among its European peers, having been boosted by an extended sterling sell-off linked to investor jitters around Brexit.

London’s blue chip index rose 0.8% or 59.52 points to 7,453.48 points, while continental indexes suffered.

The French Cac 40 and German Dax fell 0.23% each.

The weaker pound supported the FTSE 100’s rise, as many of its listed multinational firms tend to benefit when foreign currencies are stronger than the pound.

Sterling was trading lower by 0.2% versus the US dollar at around 1.335, and was down more than 0.4% versus the euro at 1.131.

David Madden, a market analyst at CMC Markets, said: “GBP/USD is in the red as the sell-off that started on Friday has run over into this week.”

While the sell-off started on the back of a slew of Office for National Statistics data that revealed a mixed picture for the UK economy at the start of the fourth quarter, Mr Madden said the current weakness in sterling was due to “traders’ nervousness surrounding Brexit”.

Speaking to MPs yesterday, Prime Minister Theresa May gave a clearer breakdown of where the UK was in relation to Brexit negotiations to date.

She said that Britain’s offer for its divorce bill for the EU, which is likely to be between £35 billion and £39 billion, would be off the table if the UK does not agree to a future partnership with Brussels.