Gloomy data for UK drags pound lower

The pound was in the doldrums after a disappointing set of numbers on the UK’S economic growth.

Sterling was still down 0.44 per cent against the US dollar at $1.268 by the end of the day, having dropped after the release of April’s GDP numbers. The currency also slumped 0.12 per cent to €1.121.

The slew of candidates for the Conservative Party leadership formally launched their campaigns yesterday, with some analysts eyeing the race as another potential source of volatility.

Sebastian Clements, currency analyst at OFX, said: “With hardline Brexiteer Boris Johnson currently out in front in the race to become prime minister, sterling is vulnerable as analysts pre - dict GBP/USD may drop to as low as $1.24 in the face of a leader who favours a no-deal Brexit.” The weakening pound gave strength to top shares in London, as did a more upbeat outlook for global trade as Mexico and the US agreed a truce.

The FTSE 100 gained 43.6 points to close 0.59 per cent higher at 7,375.54.

Ocado shares climbed 52p to 1,165p after it announced a pair of major investment deals to expand into vertical farming.

But plumbing products supplier Ferguson, which rebranded from Wolseley in 2017, saw shares slide 248p to 5,100p after the FTSE 100 firm reported third- quarter revenues below estimates after growth slowed in the US.

The biggest risers on the FTSE 100 included Antofagasta up 29.4p to 834.4p and the biggest fallers Fresnillo down 22.2p to 789.8p.