Brexit hopes lift sterling to FTSE’S cost

The pound got a boost as hopes were raised for a resolution to Brexit.

The currency surpassed the $1.30 mark, rising 0.38 per cent to $1.308. It was also 0.13 per cent up on the euro at €1.163.

Fiona Cincotta, senior market analyst at City Index, said: “Brexit optimism lifted the pound; cross-party talks are reportedly going well and Theresa May hinted that a customs union compromise could be on the cards.

“The fact that Theresa May is intending to conclude the talks mid next week suggests that the two sides are close to sealing a deal. Suddenly a Brexit agreement being pushed through Parliament before the toxic European elections doesn’t look so farfetched.”

Sterling’s strength held back London’s top stocks, which lost ground as multinationals were hit by the less beneficial exchange rate. The FTSE 100 closed lower by 18.51 points, or 0.25 per cent, at 7,385.26.

Sainsbury’s revealed a 42 per cent plunge in annual profits after taking a raft of charges including a £46 million hit from its failed bid to merge with Asda. Shares rose 8.7p to 231.2p.

House-building giant Persimmon revealed a drop in forward sales and became the latest group to warn over rising build costs, with its stock falling 14p to 2,222p.

Shares in pharmaceuticals giant Glaxosmithkline fell by 13.6p to 1,559.8p after it reported a rise in first-quarter profit off the back of rising vaccine sales.

And shares in takeover target Inmarsat dipped 4p to 541.2p after it flagged a first-quarter loss as it counted the cost of charges.