FTSE crawls into black as sterling drags

Oil prices resumed their decline as Donald Trump urged Saudi Arabia and other major oil exporters not to cut production, weighing on FTSE 100 firms.

A barrel of Brent crude was trading 2.8 per cent lower at $67.06.

It came just a day after oil rallied following Saudi Arabia signalling a production cut. But Trump tweeted in opposition to the move, saying oil prices should be lower based on supply.

Major oil stocks declined on the news, with BP down 14.6p to 513.5p and Royal Dutch Shell “A” shares down 54p to 2,377.5p

The FTSE 100 avoided closing in the red by a whisker, gaining just 0.68 points, or 0.01 per cent, to finish the day at 7,053.76.

The blue-chip index was also under pressure from a swiftly rising pound, which Conor Campbell of Spreadex said “effectively ruined the FTSE’S day”. Sterling was up 0.77 per cent against the euro to €1.154 and 1.4 per cent against the dollar to $1.303, bolstered by more positive Brexit headlines and fresh labour market figures.

Vodafone led the FTSE risers – closing up by 7.8 per cent to 155.6p – as new boss Nick Read took aim at cutting operating costs by at least £1 billion by 2021.

Meanwhile, shares in Interserve hit a fresh 30-year low on concerns about the outsourcing company’s financial future. But the stock recovered after the company said its strategy was on track, to close 2.1 per cent lower at 38.5p.

The biggest risers on the FTSE 100 included Melrose up 12.2p to 177.1p, while the biggest fallers included Wood Group down 17.4p to 650.2p.