MARKET REPORT

HOPES of further progress in Brexit talks have pushed the pound past two-month highs but dragged on the FTSE 100 which hit its lowest level since the end of September.

The pound jumped nearly 0.7% versus a weaker US dollar to 1.349, marking its highest point since September 22. Its gains against the euro were relatively subdued, rising nearly 0.3% to 1.134.

The currency’s rise weighed on the FTSE 100 which was down 0.9% or 66.89 points at 7326.67 - its lowest close since September 28.

Sterling’s rise was driven primarily by reports that British negotiators had put forward a proposal to devolve powers to Northern Ireland that would help pave the way for a border deal with the Republic of Ireland.

In UK stocks, Lloyds Banking Group shares fell 1.1p to 66p amid news that it had reached a settlement with a couple who helped uncover the fraud scandal at HBOS Reading, for an undisclosed sum. The lender has shelled out more than £29m in compensation payouts.

RBS dropped 5p to 276.6p. The lender told staff on Thursday that it had finally closed its “bad bank” - which was used to house toxic assets dating back to the financial crisis - having folded £16.1bn worth of risk weighted assets into its core operations.

Premium pubs and beer company Marston’s jumped 10.2p to 115p after booking a 24% rise in full-year pre-tax profits, having shrugged off higher property and employment costs.

But pub peer Greene King tumbled 20p to 520p amid an 8% drop in half-year profits and sliding sales, saying results were hit as pub goers tightened their belts.

Shares in the Daily Mail & General Trust group plunged 167.5p to 534.5p as the company swung to a full-year loss of £112m.

The business was stung by impairment charges linked to its Genscape, Xceligent and SiteCompli businesses, which were hit by lower growth and challenging trading, and said its short-term earnings will be “adversely affected” next year by recent disposals and “challenging conditions”.

The biggest risers on the FTSE 100 were Mediclinic International up 25.5p at 565.5p, BT Group up 5.4p at 260.8p, Convatec Group up 2.9p at 194p, and BAE Systems up 8p at 552p.

The biggest fallers on the FTSE 100 were AstraZeneca down 123p to 4,777p, British American Tobacco down 113p to 4,689p, Prudential down 41p to 1,859p, and GlaxoSmithKline down 28p to 1,279.5p.