Retail sales harm pound

Sterling was out of favour again yesterday after retail sales data disappointed despite food and drink sales receiving a boost from the World Cup.

The pound dropped under 1.30 when figures showed retail sales were down by 0.5% last month, as compared to May. Economists were predicting sales to rise by 0.2%.

Experts are now divided over whether the Bank of England will raise rates in August.

By the close, the FTSE 100 had climbed 0.1% or 7.69 points to 7,683.97, while the Dax in Germany had fallen 0.70% and France’s Cac 40 was knocked 0.63%.

Oil prices were level with Brent crude at $73.092 per barrel. Prices have inched upwards due to Saudi Arabia’s signal it was reaching the limits of its spare production capacity.