DAVID MYRDDIN-EVANS

SHARES were trading up in early trade yesterday morning after the pound slumped on Monday, providing a fillip for FTSE 100 shares because so much of their earnings are denominated in dollars.

The positive performance of equities came despite the breakdown in Brexit talks, caused by the DUP objection to Theresa May’s concessions on the Irish border.

They started the week on a positive note, however, closing up by 0.53% to 7338.97 on Monday following the passing of Donald Trump’s tax reforms which are perceived to be business friendly.

It marked a change in direction after the FTSE 100 was down 1.5% overall last week.

Utility companies led the market down on Friday, with Severn Trent off 2.5% and SSE down 2.3% ahead of a price-control update from waterindustry regulator Ofwat. The FTSE 100 was 0.4% lower.

Royal Mail, now in the FTSE 250, also fell 3.9% on a broker downgrade.

The FTSE 100 was down on Thursday as Brexit optimism kept the pound strong, hurting companies that earn in dollars. British American Tobacco, for example, fell 2.4%.

Thursday also saw the end of a disappointing month for the FTSE 100, with the index down 2.2% overall in November.

Wednesday also saw stocks lower as the pound rallied on news that a Brexit bill had been agreed. The FTSE 100 was down 0.9%.