FTSE down as UK retail data boosts pound

Market report Emma Newlands

The pound rose above $1.30 against the US dollar for the first time since September, as strong UK retail sales gave a boost to sterling and jitters surrounding calls for Donald Trump’s impeachment weighed on the greenback.

Sterling was up more than 0.4 per cent versus the US dollar at $1.303 in early trading, its highest level in nearly eight months, but was trading 0.2 per cent higher at $1.300 by the afternoon.

Against the euro, the pound was up 0.5 per cent at €1.168. Investors piled into the UK currency after month-on-month retail sales data for April outstripped expectations, rising by 2.3 per cent due in part to the later timing of the Easter holidays and warmer weather.

The strength of the pound weighed on the FTSE 100, which ended the day’s trading down 67.05 points at 7,436.42.

In UK stocks, Royal Mail rose 2.8p to 433.6p after reporting that pre-tax profits rose 25 per cent to £335 million in the year to 26 March.

Land Securities dropped 25p to 1,092p after full-year pre-tax profits collapsed to £112m from £1.3 billion amid dropping demand in the London office market in the wake of the Brexit vote.

Travel giant Thomas Cook saw shares rise 1.2p to 95.2p as half-year revenues rose 2.6 per cent on a like-for-like basis to £3bn.

The biggest risers on the FTSE 100 included Centrica, up 7.5p to 200.9p, Merlin Entertainment, up 10p to 516.5p, and Marks & Spencer Group, up 7.1p to 382.6p.

The biggest fallers included Royal Dutch Shell’s B shares, down 89.5p to 2,161p, Randgold Resources, down 195p to 7,275p, and Provident Financial, down 78p to 3,078p. The luxury brand’s shares jumped after a 10 per cent rise in annual underlying profits thanks to the weaker pound, which bolstered foreign income. The retailer fell on news of plans for more high street store closures and underlying losses of £4.4 million for its UK business in the first half of its financial year.