Hearty pound takes life out of FTSE 100

The Bank of England’s decision to hold interest rates gave heart to the pound and took life out of the FTSE 100 on the eve of Britain’s departure from the EU.

London’s blue-chip index closed 101.61 points lower at 7,381.96 as sterling climbed around half a per cent against the dollar and the euro.

Meanwhile the coronavirus crisis in China deepened as the number of confirmed cases increased, along with the number of fatalities.

David Madden, market analysts at CMC Markets UK, said: “Stocks that have exposure to China are bearing the brunt of the sell-off.

“The rally in the pound on the back of the Bank of England keeping rates on hold has pushed helped push the FTSE 100 to its lowest level since mid-december.”

In company news, spirits giant Diageo has tempered sales expectations for the year as it faces a backdrop of global “uncertainty”.

The Johnnie Walker maker warned that fullyear revenues are expected to be towards the lower end of forecasts. Shares lost 81p to 3,011p.

Royal Dutch Shell “A” shares were trading 93p lower at 2,038p after a hefty fall in full-year profits on the back of lower oil prices and charges in the final quarter.

The oil giant reported a 36 per cent drop in earnings attributable to shareholders to $15.3 billion (£11.8bn) for 2019.

PG Tips and Lyons owner Unilever unveiled a strategic tea review as it reported a 33 per cent drop in pre-tax profits to €8.3bn for 2019, having suffered a marked slowdown in its South Asian business and weaker trading in China. The consumer goods giant gained 89.5p to 4,527.5p.