Markets

A rally in the pound hasn’t stopped the FTSE 100 from closing higher

London's blue-chip index closed higher today despite a rally in the pound.

The FTSE 100 index closed 0.6 per cent higher at 7,660.92 points.

Meanwhile, the pound, which hit post-Brexit record highs week, got an extra boost against the dollar after UK GDP figures came in above expectations.

The UK's economy grew 0.5 per cent in the fourth quarter, according to figures from the Office for National Statistics (ONS), beating economists' expectations.

Earlier today, sterling rose to as high as $1.4285 against the weakening dollar. At the time of writing, the pound was up 0.15 per cent to $1.4163.

David Madden, market analyst at CMC Markets, said: "The downward trend in the US dollar is showing no signs of letting up, and the pound is being propped up by it.

"Sterling has slipped since the morning, but the upward trend is still in place so we could see new buyers enter the market."

FTSE 100

Madden said the rally across European stocks felt "lacklustre".

"Even though equities are in positive territory the level of enthusiasm isn’t anything special."

Shares in the London Stock Exchange were up because of an upgrade by Berenberg yesterday, Madden said.

"The investment bank have a price target of 4,690p for the stock. There is room for consolidation in the financial markets exchange business, according to Sir Chris Hohn. The stock is near is all-time high."

Miners Randgold Resources and Fresnillo were hit by profit taking as traders cashed in on a positive run.​

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