Brexit weighs on sterling as talks continue

Sterling was in the doldrums as Brexit-related uncertainty continued to plague the currency.

The pound lost ground, falling 0.56 per cent to €1.161, and was down 0.44 per cent versus the dollar to $1.301 at the London market close.

David Madden, market analyst at CMC Markets UK, said: “The lack of clarity in regards to the situation has chipped away at investors’ confidence in the pound. It was confirmed that the talks between the Conservative party and the Labour party will continue, but traders aren’t holding out much hope.”

Meanwhile, the FTSE 100 inched up by 10.5 points,to 7,271.

In market news, IT V shares dropped 8p to 123.6p as the broadcaster exp ects half-year advertising revenues to tumble by 6 per cent after Brexit uncertainty hit first quarter trading.

Non-standard Finance (NSF) dismissed suggestions that it would have to raise fresh capital if the sub-prime lender was to succeed in its £1.3 billion takeover tilt for rival Provident.

The idea was put for ward by Provident in the latest war of words between the two firms. Shares in NSF were down 0.1p at 51.7p, while Provident dropped 3.2p to 503.8p.

Insurance premiums fell at Direct Line in the first three months of the year amid “tough” competition, sending shares 5.4p lower to 312p.

Pub chain Wetherspoon’s saw stock tumble by 59p to 1,286p. The group was urged by the City to put up its prices, as its strong sales performance continues to be offset by higher costs.

It came as quarterly results revealed like-forlike sales rose 7.6 per cent in the 13 weeks to 28 April.