MARKET REPORT

sion.barry@walesonline.co.uk STERLING jumped to a sixweek high yesterday after Michel Barnier signalled that a Brexit deal is within sight.

The pound was up nearly 1% versus the dollar at 1.302 and gained 0.4% against the euro to end the session on 1.122.

It came after the EU’s chief negotiator said a Brexit deal could be achieved within the next six to eight weeks.

The pound - which has taken a hammering in recent weeks as fears mount that Britain is set to crash out of the EU without a deal - was also spurred on by betterthan-expected figures for the UK economy.

The Office for National Statistics (ONS) said the economy expanded 0.3% in July, while gross domestic product (GDP) rose 0.6% on a threemonth basis, driven by construction and services.

The pound strengthening knocked the FTSE 100, which closed the session flat.

London’s top flight ended the day up 0.6 points, or 0.02%, at 7,279.3.

Primark owner Associated British Foods closed down 13p at 2,257p after the firm warned it will take a £20m hit due to the stronger pound.

While its full-year outlook for the group is unchanged with “progress” expected in adjusted operating profits and adjusted earnings per share - unfavourable exchange rates are expected to drag on results.

Also in the doldrums was Debenhams, which has enlisted the services of KPMG to help draft emergency plans to save the troubled retailer.

The department store is said to be considering a list of options including a company voluntary agreement (CVA), a controversial insolvency procedure used by struggling firms to shut under-performing shops.

The retailer’s stock sank 1.3p, or 10.7%, to end the day on 11.5p.

Meanwhile, Dignity shares crashed after rival Co-op fired the latest salvo in the sector’s price war. Shares ended down 55p at 977p.

The biggest risers on the FTSE 100 were London Stock Exchange Group up 82p at 4,726p, Royal Bank of Scotland up 4.3p at 249.3p, Morrisons up 4.25p at 266.15p and Experian up 30p at 1,920p.

The biggest fallers on the FTSE 100 were Melrose Industries down 9.9p at 216.3p, Fresnillo down 21.6p at 812.4p, Glencore down 5.2p at 290.75p and EasyJet down 21p at 1,419p.