Weak pound helps FTSE 100 edge higher as European peers dip

The FTSE 100 outperformed the rest of Europe to just finish in positive territory on Tuesday.

London’s top index lost some early gains due to weakness in the US and elsewhere in Europe during the session, but saw large multinationals supported once again by weakness in the pound.

The FTSE 100 moved 0.02%, or 1.73 points, higher to finish at 7,625.72.

Across the Channel, Germany’s Dax index was 1% lower for the day and the Cac 40 closed down 0.67%.

Michael Hewson, chief market analyst at CMC Markets UK, said: “It’s been another negative session for European markets with the Dax pushing ever closer to six-month lows.

“The FTSE 100 is holding up well largely due to the continued weakness in the pound and a belief, according to Goldman Sachs, that a weaker currency and higher oil price will help insulate it from the worst of any economic weakness.

“This comes across as somewhat simplistic given the damage higher oil prices could do to the margins of its other big caps like Unilever and Diageo, and other consumer retail, nonetheless it ought to be positive for the likes of BP, Shell, and Glencore.”

In the US, the main markets recoiled after a late rally ahead of the close of play on Monday.

Meanwhile, sterling slipped to a new six-month low against the dollar.

The pound was down O.37% at 1.216 US dollars and was 0.21% lower at 1.150 euros at market close in London.

In company news, shares in online fashion retailer Asos slipped as it warned earnings will be at the lower end of its guidance after wet weather in July and August knocked demand for clothes.

The group said UK sales tumbled 16% in its final quarter, with poor weather compounding woes amid a worsening UK clothing market.

Shares in Asos finished down 5.8p at 381p on Tuesday.

British Land was higher at the close despite telling shareholders that Facebook owner Meta has paid it ?149 million to surrender the lease on one of its London office buildings.

British Land said the move would reduce its earnings per share by 0.6% over the six months to next March but held its full-year earnings guidance.

It saw shares climb by 10.7p to 326.8p.

Elsewhere, Videndum shares tumbled heavily after it told investors its revenues dropped almost a quarter over the first half of the year after it was knocked by the writers and actors strikes in Hollywood.

The firm, which makes hardware and software for the entertainment industry, saw shares drop 203p to 347p as it also swung to a ?50 million loss.

The price of oil tipped higher after a slight retreat from the 10-month high it struck last week.

A barrel of Brent crude rose by 0.47% to 93.73 US dollars (?77.03) as markets were closing in London.

The biggest risers on the FTSE 100 were RS Group, up 39p to 749p, Barclays, up 6.04p to 159.68p, Ocado, up 24.6p to 681.6p, Entain, up 29.4p to 947.4p, and Kingfisher, up 5.2p to 223.9p.

The biggest fallers on the FTSE 100 were Smiths Group, down 66.5p to 1,600p, Sainsbury’s, down 7.7p to 261.7p, Spirax-Sarco, down 232p to 9,242p, Halma, down 40.5p to 1,904.5p, and Weir Group, down 37p to 1,873.5p.