Pound gains as Johnson takes up office

The pound gained strength as Boris Johnson officially took office, while the Euro suffered from jitters ahead of a central bank meeting.

Although the instalment of the new Prime Minister lent some stability to the currency, it also benefited from the decline in the Euro ahead of today’s European Central Bank meeting.

Fiona Cincotta, senior market analyst at City Index, said the currency could still fluctuate as the new leader makes his first moves.

“Speculation is rife that Johnson will show the door to the remaining ministers who are proremain and replace them with stronger Brexiteers,” she said.

“The pound will take its next cue from his first decisions in office.”

Meanwhile, the FTSE 100 dropped 55.4 points to close at 7,501.46 as mining stocks dragged on the index. Specialist insurer Just Group saw shares drop 5.09p to 49.06p after retirement income sales plummeted by 30 per cent in the first half of the year.

ITV reported a fall in revenues and earnings for the past six months, despite hailing a strong performance by Love Island. But the broadcaster was the biggest riser on the FTSE 100, gaining 7p to 113.25p, after the results avoided investors’ worst fears.

Shares in Marston’s plunged 14.6p to 107.2p after the pub giant warned investors of weaker sales over the past four months.

Standard Life Aberdeen settled a long-running feud with Lloyds Banking Group. Shares in SLA were up 3.2p to 310.4p while Lloyds shares were flat at 56.97p.