Business

FTSE 100 higher as Burberry falls

Trader in London Image copyright AFP

UK shares rebounded following Monday's fall, with the benchmark FTSE 100 index ending more than 50 points higher.

The FTSE closed 52.5 points, or 0.76%, higher at at 7,000.06 points.

High Street retailers were among the biggest risers, with Next up 5.3% and Marks & Spencer 4.3% higher.

However, shares in Burberry fell 7.2% despite the fashion house reporting a big rise in UK retail sales as tourists headed to its stores in London to take advantage of the weaker pound.

The company said underlying UK sales had increased by 30%, but total revenues for the six months to 30 September fell 4% on an underlying basis to £1.16bn.

Burberry said growth in retail sales had been offset by a decline in its wholesale and licensing businesses.

Shares in education publisher Pearson fell a further 2.3%. On Monday its shares tumbled more than 8% after it reported falling sales amid "challenging" trading.

On the currency markets, the pound was enjoying a better day. Sterling was up 1% against the dollar at $1.2299 and also rose 1.1% against the euro to €1.1193.

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