MARKET REPORT

THE FTSE 100 pared losses yesterday thanks to the weak pound while global indexes declined as previous investor optimism around US-China trade relations cooled.

London’s blue-chip index closed 36.24 points, or 0.52%, higher at 6,942.87 - while Germany’s DAX rose 0.11% but France’s CAC fell 0.37%.

Fiona Cincotta, senior market analyst at City Index, said: “Global equities ended a four-day rally on Thursday as reality set in over what was actually achieved in the USChina trade talks, and as the US government shutdown rattles on.

“The FTSE was faring better than its European counterparts paring losses, thanks in part to the Brexitweakened pound.”

She said the pound traded lower against the US dollar as uncertainty around Britain’s departure from the European Union continues “to dominate amid the airing of the Brexit agreement in Parliament. This combined with signs of an economic slowdown as retailers failed to increase their sales this Christ- mas from a year earlier has put the bears firmly in control”.

Sterling was down 0.15% against the greenback at 1.276 and was up 0.09% versus the euro at 1.108 at the London market close.

Retail news dominated the day, with a host of firms posting festive trading figures. Elsewhere, car giant

is to cut 4,500 jobs under plans to make £2.5bn of cost savings.

Most of the cuts are expected to be in the UK, with a voluntary programme being launched.

Brent crude, the international benchmark, fell 0.05% at 61.29 US dollars.

The biggest risers on the FTSE 100 were up 28.2p to 949.6p,

up 28p to 1,152, up 4.6p to 216.4p, and up 106p to 5,060p.

The biggest fallers on the FTSE 100 were down 48p to 1,742p, down 150p to 6,590p, down 52p to 2,930p, and down 66p to 4,787p.