Footsie nears record levels as pound slips

Market report Emma Newlands

The pound slipped further against the US dollar, lifting blue-chip stocks and pushing the London market towards record territory.

Sterling dropped back below $1.30, sinking 0.5 per cent versus the greenback at $1.297. It came after the American currency climbed following the nation’s job openings and labour turnover summary (Jolts) report reaching a record high.

In a contrast of fortunes, the FTSE 100 Index closed up 10.79 points at 7,542.73, bringing it within a whisker of the all-time high of 7,547.63 recorded on 26 May and 2 June. Despite slumping against the dollar, the pound was marginally up against the euro at €1.105.

David Madden, market analyst at CMC Markets, said: “The jump higher in the US dollar, on the back of strong job opening figures, gave a reason for dealers to go long on the greenback, and in turn sell sterling and the single currency.”

In UK stocks, insurance giant Standard Life edged lower after it revealed that investors had taken £3.7 billion from its funds in the first half, and it closed down 1.2p at 442.1p.

In contrast, UK payments processor Worldpay enjoyed a strong session after being granted the second extension for its merger talks with US suitor Vantiv as the firms haggle over terms of the £9bn deal. Shares were up 7p to 383.6p.

The biggest risers on the FTSE 100 Index included Taylor Wimpey, up 3.7p to 195.2p, Kingfisher, up 4p to 309.4p, and Direct Line Insurance Group, up 5.2p to 411.3p. The biggest fallers included Intercontinental Hotels Group, down 176p to 4,235p, Provident Financial, down 35p to 2,035p, and G4S, down 5.3p to 330.6p. The retailer was boosted by a first-quarter sales jump, with one analyst saying: “We continue to see good value in Pets at the current share price.” The bookmaker reported higher first-half sales and earnings but an analyst commented that the slower growth rate has “worried investors”.